In a sign of continued strength in the American labor market, the number of people applying for unemployment benefits has declined for the sixth straight week, reaching the lowest level since mid-April.

According to the latest data, jobless claims for the week ending July 19 dropped by 4,000 to 217,000—falling below economists’ expectations of 227,000. This sustained decrease in unemployment applications points to a healthy labor market where layoffs remain relatively rare, even amid economic policy uncertainties and corporate restructuring.

Unemployment claims are a closely watched indicator of the job market’s health, as they reflect the number of people recently laid off and seeking support. The recent decline suggests employers remain confident in retaining their workforce, despite economic headwinds caused by rising costs and policy shifts.

Earlier this month, employers added an unexpected 147,000 jobs in June, a significant jump that exceeded analyst forecasts. That hiring surge pushed the national unemployment rate down to 4.1%, a slight improvement from 4.2% in May, signaling that the labor market remains resilient even as companies adjust to external pressures.

However, not all indicators are pointing up. Some sectors are feeling the squeeze from new economic measures—particularly the imposition of aggressive tariffs that have raised costs for businesses and consumers alike. Economists argue these tariffs reduce efficiency by stifling competition and invite retaliatory measures from foreign governments, putting pressure on U.S. exporters and contributing to workforce uncertainty in affected industries.

The threat of further tariffs still looms large. A key deadline on new import duties is set for August 1, leaving businesses and investors waiting anxiously to see whether trade agreements can be reached or whether more economic turbulence lies ahead. Without a resolution, some experts warn that the trade measures could lead to renewed inflation and dampened job growth.

Several major companies have already announced layoffs this year, citing cost concerns and strategic restructuring. Among them are Procter & Gamble, Microsoft, Meta, Starbucks, Dow, CNN, Workday, Google, and Southwest Airlines. These cuts have yet to significantly impact national unemployment figures, but they signal growing caution among large employers.