AP Business Writer, Matt Ott
WASHINGTON (AP) — The number of Americans filing for unemployment benefits rose modestly last week. This is an indication that employers are still retaining workers despite the economic uncertainty associated with US trade policy.
Unemployment claims for the week ending August 2 have risen between 7,000 and 226,000, the Labor Bureau reported Thursday.
The report is the first government labor market data release since Friday’s tough July employment report sent down the financial markets and President Donald Trump fired the head of an agency that tallies monthly employment numbers.
The weekly application of unemployment benefits is considered a representation for US layoffs and has settled in the historically healthy range of 200,000 to 250,000 since Covid-19 adjusted the economy in the spring of 2020.
It was the second time Jobless’s profit application has risen in eight weeks.
Although layoffs remained low by historical standards, there has been significant degradation in the labor market this year.
Last week, the government reported that US employers added just 73,000 jobs in July. Worse, the May and June job revisions shaved 258,000 stunning jobs from previous estimates, with unemployment rates ranging from 4.1% to up to 4.2%.
“The theme of ‘no employment/fire’ in the labor market remains firmly intact,” Jeffries analysts wrote in a note to clients.
Many economists claim that they created a volatile tariff rollout for Trump in April. Employers are reluctant to expand their pay.
A tough employment report on Friday raised Trump’s outrage, claiming that the data was manipulated for political reasons and that he ordered the firing of Erica Mantelfer, the head of the Bureau of Labor Statistics, which produces monthly job figures.
The fire was thoroughly criticized by economists, along with Wall Street investors, who, along with economists, who have considered work figures to be reliable. Stock markets and bond markets often respond sharply when released.
The US market recoiled in a response from last week’s employment report, with Dow Jones Industrial Arage falling over 600 points on Friday.
BLS does not contribute to weekly unemployment benefits reports except that it calculates annual seasonal adjustments that explain changes in weather, holidays, and school schedules.
The Department of Labor’s Employment and Training Bureau collects weekly unemployment claims reported by the states.
Last week’s government report found another indicator of the labour market softening, revealing that employers listed employment vacancy between 7.7 million and 7.7 million in June. The number of people quitting their jobs – signs of confidence finding a better job – fell to its lowest level in June since December. Employment has also decreased since May.
However, major companies such as Procter & Gamble, Dow, CNN, Starbucks, Southwest Airlines, Microsoft, Google and Facebook’s parent company Meta announced their job openings this year. Recently, Intel and Walt Disney Co. announced staff cuts.
Most deadlines for Trump’s strict proposed import taxes began Thursday, but several transactions have been made and other deadlines to negotiate have been extended. Unless Trump reaches deals with the country to lower tariffs, economists fear that it will act as a resistance to the economy and cause another increase in inflation.
Thursday’s report also showed that the average four-week billing that smoothes out some of the weekly volatility has declined from 500 to 220,750.
The total number of Americans collecting unemployment benefits the week before July 26th reached Route 1.97 million, the highest level since November 2021.
Original issue: August 7, 2025 9:05am EDT
