Jobless Aid Applications Fall to Lowest Level Since 1969
Applications for jobless benefits fell to their lowest level in more than five decades last week as layoffs remain historically low despite global economic uncertainty.
U.S. applications for unemployment benefits fell by 22,000 to 187,000 in the week ending July 18, the lowest number since September 1969, the Labor Department reported Thursday.
The figure was below the 215,000 new applications forecast by analysts surveyed by data firm FactSet. Weekly filings are considered a proxy for layoffs and are a near real-time indicator of the U.S. job market's health.
Despite surging oil prices, driven by geopolitical tensions, the American job market remains healthy with historically low layoffs. However, economists caution that prolonged periods of high energy costs could eventually strain the labor market.
A number of prominent companies, including Verizon, UPS, Amazon, Disney, Starbucks, and Walmart, have recently reduced their workforces. Microsoft announced earlier this month it was cutting 4,800 jobs, about 2.1% of its global workforce.