US Jobless Claims Fall, Continuing Claims Rise

US initial jobless claims fell by 7,000 to 221,000 for the week ending July 12, the lowest level in three months and the fifth consecutive weekly decline, surpassing expectations and signaling continued labor market resilience. However, continuing claims rose to 1.96 million, reaching the highest level since November 2021 and suggesting some workers are staying unemployed longer. Seasonal factors like auto plant shutdowns and ongoing economic uncertainty, including trade tensions and tariffs, are influencing claims data. While layoffs remain low, elevated continuing claims and cautious hiring point to some underlying labor market weakness. Economists warn that jobless claims could rise over the summer if uncertainties persist. The labor market continues to show strength, but risks remain due to policy and economic headwinds.