US weekly unemployment claims climb to 197,000 as layoffs stay historically low

For the week ending July 25, the United States saw 197,000 new applications for unemployment benefits, up 9,000 from the prior week, according to Labor Department data. The revised figure for the previous week was 188,000, still the lowest level in more than five decades. While weekly claims have hovered between 200,000 and 250,000 since the pandemic recession, the four-week moving average fell to 202,750, indicating modest volatility.

Analysts caution that sustained higher oil prices linked to the U.S.-Iran war and elevated energy costs could eventually force companies to reduce headcount. The Federal Reserve’s core PCE inflation rate came in at 3.7%, well above its 2% goal, and the economy’s Q2 growth slowed to 1.5%. Recent hiring slowed sharply, with only 57,000 jobs added in June and major employers such as Verizon, UPS, Amazon, Disney, Starbucks, Walmart and Microsoft announcing cuts.