MATT OTT Business Writer.

The number of Americans filing for unemployment benefits fell last week to the lowest level in three months, a sign that the U.S. labor market remains sturdy despite fears over the impact of widespread U.S. tariffs. The Labor Department reported Thursday that jobless claims for the week ending July 12 fell by 7,000 to 221,000, the fifth straight weekly decline and the fewest since mid-April. It was also less than the 232,000 that analysts forecast. Applications for unemployment aid are a proxy for layoffs. The total number of Americans collecting unemployment benefits for the week of July 5 ticked up by just 2,000 to 1.96 million.

U.S. applications for unemployment benefits fell last week, remaining in the historically healthy range of the past couple years. The Labor Department reported Thursday that jobless claims for the week ending July 5 fell by 5,000 to 227,000, fewer than the 238,000 that analysts forecast. Applications for unemployment aid are viewed as representative of layoffs. The four-week average of claims, which evens out some of the weekly volatility, fell by 5,750 to 235,500. The total number of Americans collecting unemployment benefits for the week of June 28 rose by 10,000 to 1.97 million. That’s the most since November of 2021.