Signs Are Mounting That The U.S. Labor Market Is Losing Steam

MACROECONOMICS - WASHINGTON. The number of Americans filing new applications for unemployment benefits dropped more than expected last week, but volatility around this time of the year as automobile manufacturers idle plants for retooling makes it harder to get a clean read on the labor market.

Initial claims for state unemployment benefits fell 17,000 to a seasonally adjusted 222,000 for the week ended July 6, the lowest level since late May, the Labor Department said on Thursday. Economists polled by Reuters had forecast 236,000 claims in the latest week.