U.S. initial jobless claims fell 22,000 to 187,000 in the week ended July 18,
below the 212,000 consensus, the U.S. Labor Department said on Thursday. The
report is the latest sign the labor market remains stable. The unemployment rate
unexpectedly dropped to 4.2% in June, a one-year low, a decline driven more by a
shrinking labor force than by payroll gains. Limited labor supply, slow job
creation and few layoffs have kept unemployment at historically low levels. That
dynamic is keeping Fed officials focused on suppressing inf that remains well
above the Fed's 2% target.
