The US labour market continues to defy expectations, with jobless claims falling and payrolls expanding, even as tech giants announce thousands of job cuts. New government data released Thursday showed a drop in unemployment claims alongside stronger-than-expected hiring in June. Jobless claims for the week ending June 28 declined by 4,000 to 233,000, the Labor Department reported, coming in below the analyst forecast of 241,000. The four-week moving average, which smooths out weekly volatility, also dropped by 3,750 to 241,500. Jobless claims are often viewed as a proxy for layoffs, AP reported. In a separate release, the department said the US economy added 147,000 jobs in June, surprising economists and indicating continued resilience in the labour market. The unemployment rate edged down to 4.1% from 4.2% in May, defying expectations of a rise to 4.3%. Still, several high-profile companies have announced workforce reductions in recent weeks. Microsoft on Wednesday confirmed its biggest layoff in more than two years, with about 9,000 positions being cut in its second mass layoff this year. Earlier this month, Google offered voluntary buyouts to more employees as part of a fresh cost-cutting effort ahead of an expected court ruling that could order the breakup of parts of its business. Other firms that have recently disclosed layoffs include Procter & Gamble, Workday, Dow, CNN, Starbucks, Southwest Airlines, and Meta, the parent company of Facebook. Despite these cuts, the number of Americans collecting unemployment benefits remained steady at 1.97 million for the week ending June 21.
