FX.co ★ Initial Jobless Claims Unexpectedly Drop

In the first week of July 2025, initial jobless claims in the United States fell by 3,000 from the previous week, reaching 224,000, contrary to market predictions of a rise to 228,000. Concurrently, continued claims decreased by 15,000, dropping from the highest level in over three years the week before, to 1,953,000. This figure came in below the expected 1,960,000. These findings indicate a labor market that is softening, yet remains strong, with hiring slowing down due to the elevated number of ongoing claims. This contrasts with the significant downward revisions in payroll figures reported by the Bureau of Labor Statistics (BLS). Additionally, initial claims filed by federal government employees—under increased scrutiny after recent layoffs by the Department of Government Efficiency (DOGE)—declined by 71, from the four-month peak observed in the preceding week, landing at 637.