US Layoffs Hit 57-Year Low Amidst Job Market Concerns

First-time applications for unemployment benefits in the United States have dropped to an estimated 187,000 for the week ending July 18, marking a 57-year low not seen since September 1969. This significant decrease, a drop of 22,000 claims from the previous week, suggests that widespread layoff fears are not currently manifesting in large-scale job losses, according to the Department of Labor report. Continuing unemployment claims remained relatively stable, decreasing by 2,000 to 1.8 million.

Despite the positive trend in layoff numbers, the broader job market sentiment remains cautious. Many economic observers describe the current environment as "low-fire, low-hire," indicating that while employers are not initiating mass layoffs, they are also not actively engaged in significant hiring. This sentiment is reflected in recent job growth figures. In the first half of 2026, private sector payrolls grew by an average of 88,000 jobs per month, which is an improvement over 2024 and 2025 but falls short of the job gains observed in 2023.

Further illustrating this cautious hiring climate, U.S. employers added only 57,000 new jobs in June, a figure less than half of the jobs added in May. The job numbers for June also saw downward revisions, with 74,000 fewer jobs added than initially reported. Glassdoor Chief Economist Daniel Zhao commented on the June hiring data, stating that "the fireworks show was cancelled," highlighting the disappointing performance compared to expectations and previous months.