US jobless claims fall to 208,000, fewest in 10 weeks

• The U.S. Department of Labor reported initial jobless claims of 208,000 for the week ending July 11, the lowest level in 10 weeks.
• The 8,000 decline from the prior week placed claims well below the 219,000 forecast by analysts surveyed by FactSet.
• In its June jobs report, the Labor Department said employers added 57,000 jobs, less than half the previous month’s total.
• The unemployment rate fell to 4.2% from 4.3% in May, but the decline was driven largely by workers leaving the labor force and no longer being counted as unemployed.
• The slower hiring followed a relative surge in job gains over the prior three months, which had countered concerns about the war in Iran’s potential effect on the labor market.

June payrolls grow by 57,000 as labor force exits push unemployment rate to 4.2%

The number of Americans filing initial claims for unemployment benefits fell to 208,000 for the week ending July 11, the Labor Department reported Thursday. The weekly filings, considered a proxy for layoffs, dropped 8,000 from the prior week and came in well below the 219,000 forecast by analysts surveyed by the data firm FactSet. The decline pushed claims to a 10-week low, signaling that layoffs remain historically low even as June hiring pulled back.

In a more comprehensive monthly report released earlier this month, the Labor Department said employers added 57,000 jobs in June — less than half the prior month’s total. The unemployment rate fell to 4.2% from 4.3%, but the decline was largely because many out-of-work people gave up looking for jobs and were no longer counted as unemployed.

The reduced hiring in June came after a relative surge in job gains over the previous three months, a stretch that had counteracted concerns that the war in Iran could affect the labor market.