Initial jobless claims in the United States fell to 227,000 last week, well below analysts' expectations of 238,000, signaling a still-firm labor market. The numbers were in line with a surprising report from the Labor Department that showed 147,000 jobs were added in June and the unemployment rate fell to 4.1%, down from 4.2% in May.
But despite the positive numbers, the labor market has not escaped the pressure of President Donald Trump's economic policies, particularly aggressive tariffs that raise the cost of goods and reduce economic efficiency. These tariffs have also invited retaliation from other countries, putting pressure on US companies that rely on exports. Several major companies such as Microsoft, Meta, Starbucks and Procter & Gamble have begun cutting jobs as a precautionary measure.
Although the implementation date of the new import tariffs has been extended to August 1, concerns about their impact on economic growth and inflation are growing. Trump has also threatened to impose tariffs of up to 200% on imported medicines, as well as 50% on copper, adding to uncertainty over the direction of US trade policy.
The four-week average of jobless claims also fell to 235,500, but the total number of Americans receiving aid rose to 1.97 million, the highest since November 2021. While the figures show a solid labour market, pressure from tariff policies and job cuts by large companies cast a shadow over the strength of the US economy.
