Initial claims for unemployment benefits in the US rose by 1,000 to 199,000 for the week ended August 1, remaining below market expectations [1, 2, 3, 4]. Continued unemployment claims grew by 24,000 to 1.801 million during the week ended July 25 [1, 2, 3, 4].
Planned layoffs by US-based employers fell sharply in July to 33,429, the lowest monthly total in two years, down 27% from June and 46% compared to the previous July [1, 2, 4]. Andy Challenger, chief revenue officer at Challenger, Gray and Christmas, said, "The pace of layoffs fell dramatically this summer. Layoff plans continue to be announced primarily in tech, and artificial intelligence is still the story, as investments in the technology reshape organizations" [1].
Nonfarm payrolls are forecast to have increased by about 80,000 jobs in July after adding 57,000 in June, with the unemployment rate expected to hold steady at 4.2% [1, 4]. US labor productivity grew at an annualized rate of 1.4% in the second quarter, exceeding market forecasts, while unit labor costs rose 1.3% quarter-over-quarter, below expectations [2, 4].
Despite concerns about artificial intelligence and geopolitical tensions in the Middle East, the US labor market continues to show resilience. Most layoffs remain confined to the technology sector, where AI investments are reshaping firms [1, 4]. Youth employment was weak in summer 2026, with teenage labor force participation at a nine-month low and youth unemployment higher than last year [4].
The labor market exhibits a "low hire, low fire" pattern, indicating employers remain cautious in hiring and layoffs amid economic uncertainty. LinkedIn economic lead Kory Kantenga noted, "这显示雇主对于扩编人力，即使是临时职位，也缺乏兴趣" (employers show little interest in expanding workforce, even for temporary roles) [4]. Federal Reserve official Alberto Musalem stated, "美国劳动市场状况强劲，接近充分就业" (the US labor market is strong and near full employment) [4].
