U.S. applications for jobless aid fell to 233,000 last week as layoffs remain low

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By MATT OTT, Associated Press Business Writer

Fewer Americans applied for unemployment benefits last week as layoffs in the U.S. remain low despite uncertainty about how tariffs will impact the economy.

The Labor Department reported Thursday that jobless claims for the week ending June 28 fell by 4,000 to 233,000, less than the 241,000 that analysts forecast. Applications for unemployment aid are considered a proxy for layoffs.

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In a separate report Thursday, the Labor Department reported that U.S. employers added 147,000 jobs in June, a sign that the American labor market continues to show surprising resilience despite uncertainty over President Donald Trump’s economic policies. The job gains were much bigger than expected and the unemployment rate ticked down 4.1% from 4.2% in May. Analysts had forecast that unemployment would rise to 4.3%.

While layoffs remain historically low, many companies have announced job cuts this year, including Procter & GambleWorkdayDowCNNStarbucksSouthwest Airlines, and Facebook parent company Meta.

On Wednesday, Microsoft announced that it is laying off about 9,000 workers, its second mass layoff in months and its largest in more than two years.

Earlier this month, Google confirmed that it had offered buyouts to another swath of its workforce in a fresh round of cost-cutting ahead of a court decision that could order a breakup of its internet empire.

The Labor Department’s unemployment benefits report showed that the four-week average of claims, which evens out some of the weekly volatility, fell by 3,750 to 241,500.

The total number of Americans collecting unemployment benefits the week of June 21 held steady at 1.97 million.

Why hosting a July Fourth pool party may cost less this year

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By ANNE D’INNOCENZIO, Associated Press Retail Writer

NEW YORK (AP) — Americans have one more reason to celebrate this Fourth of July: getting all the gear needed to host a pool party costs less than it has in years, according to a market research company’s preliminary data.

The total price to buy beach towels, a beverage cooler, bathing suits and other accoutrements of summer fun averaged $858 in June, the lowest amount for the month since 2020, consumer data provider Numerator said in an analysis prepared for The Associated Press.

The finding from the firm’s seasonal snapshot comports with broader economic measures indicating that U.S. consumers so far have not seen major impacts from President Donald Trump’s vigorous application of tariffs on foreign goods.

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Numerator tracks U.S. retail prices through sales receipts, online account activity and other information from a panel of 200,000 shoppers. To see how prices are shaping up for the summer, the company looked at the average purchase price for 16 seasonal items typically made in China.

Along with four towels, a cooler and bathing suits for two adults and a toddler, the hypothetical shopping list for a poolside gathering included a grill, four patio chairs, four cushions, a patio umbrella and four outdoor pillows. Recreation supplies included a cornhole set, two pairs of swim goggles, a set of diving rings, two beach balls and two pool floats or noodles.

Leo Feler, Numerator’s chief economist, offered a few theories for why buying all that stuff cost 11% less last month than it did in June 2023, when the average cost reached a high of $966, and 8.4% less than it did in June 2024.

Wholesale suppliers and retailers that order from Chinese manufacturers may have imported too much stock while trying to stay ahead of high tariff bills, Feler said. As declining consumer confidence measures pointed to the possibility of weak sales, those businesses might have offered early discounts rather than risking their merchandise going unsold, he said.

Given wide swings in Trump’s trade posture toward China, retail vendors may have decided to absorb any initial tariff costs instead of trying to figure out how much more to charge their business customers, Feler said. The tariff rate on Chinese products soared to 145% in April before China and the U.S. reached a deal last month that brought the overall rate down to 55%.

Suppliers often work on six-month contracts that are signed in January or February and again in June or July. That means many contracts for patio tables and chairs, for example, were signed before the White House included metal furniture in the aluminum or steel products that would be subject to a 25% tariff that went up to 50% last month.

Customers who want to buy a new set of beach towels or to replace an old cooler still might want to hold off until August since prices will get lower in late summer, Feler said. But waiting until next year may prove costly, if the tariffs on products from China remain in place, he said.

Just because preparing for a backyard bash might be comparatively less expensive right now, many economists and retail industry analysts still expect consumers to feel the weight of Trump’s favorite trade negotiation tool. Shoppers are likely to see higher prices for back-to-school items starting in July and August, according to Feler.

The time it’s taking for the extra taxes on imports to reach stores could turn out like the pandemic-induced supply chain disruptions that contributed to U.S. inflation in 2021 and 2022.

“It wasn’t like there was a sudden surge,” Feler said. “It was a few prices increased here, then a few more prices, and a few other prices, and a couple more prices. And it started gaining speed.”

Some education grants in limbo were used for ‘leftwing agenda,’ Trump administration says

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By BIANCA VÁZQUEZ TONESS, Associated Press

The Trump administration has accused states and schools of using federal education grants earmarked for immigrants’ children and low-income students to help fund “a radical leftwing agenda.”

The administration this week withheld more than $6 billion intended for after-school and summer programs, English language instruction, adult literacy and more, saying it would review the grants to ensure they align with President Donald Trump’s priorities. The freeze sent schools and summer camp providers scrambling to determine whether they can still provide programs like day camps this summer or after-hours child care this fall.

On Wednesday, the Office of Management and Budget said an initial review showed schools used some of the money to support immigrants in the country illegally or promote LGBTQ+ inclusion. The administration said it hadn’t made any final decisions about whether to withhold or release individual grants.

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“Many of these grant programs have been grossly misused to subsidize a radical leftwing agenda,” the Office of Management and Budget said in a statement.

It said New York schools had used money for English language instruction to promote organizations that advocate for immigrants in the country illegally. Washington state used the money to direct immigrants without legal status toward scholarships the Trump administration says were “intended for American students.” Grant funds also were used for a seminar on “queer resistance in the arts,” the office said.

Officials from New York and Washington state didn’t immediately respond to requests for comment.

Advocates for low-income and immigrant children connected the grant freeze to the Trump administration’s larger crackdown on immigrants. Two of the federal programs put on hold were appropriated by Congress to help support English proficiency of students still learning the language and migrant children who move with their parents to follow agricultural and other jobs.

School districts use the $890 million earmarked for English learners in a wide range of purposes, from training teachers’ aides who work with English learners, to running summer schools designed for them, to hiring family liaisons who speak the parents’ native languages. The $375 million appropriated for migrant education is often used to hire dedicated teachers to travel close to where students live.

By “cherrypicking extreme examples,” the administration is seeking to conflate all students learning English with people who are in the country illegally, said Amaya Garcia, who directs education research at New America, a left-leaning think tank in Washington, D.C.

In reality, the majority of English learners in public schools were born in the United States, according to data from the Migration Policy Institute.

“The way they’re framing it is that we’re using this money for undocumented students and families,” said Margarita Machado-Casas, president of the National Association of Bilingual Educators. “It’s a distraction. A distraction from what’s actually happening: that 5.3 million English learners who speak lots of different languages, not just Spanish, will suffer.”

Even if the students lack legal status, states may not deny public education to children in the country illegally under a 1982 Supreme Court decision known as Plyler v. Doe. Conservative politicians in states such as Oklahoma, Texas and Tennessee have pursued policies that question whether immigrants without legal residency should have the right to a public education, raising the possibility of challenges to that landmark ruling.

Meanwhile, states and school districts are still trying to understand what it will mean for their students and their staff if these funds never arrive.

In Oregon, eliminating grants for English learners and migrant students would “undermine the state’s efforts to increase academic outcomes for multilingual students, promote multilingualism, close opportunity gaps and provide targeted support to mobile and vulnerable student groups,” said Liz Merah, spokeswoman for the state’s Department of Education.

Associated Press writer Collin Binkley contributed from Washington.

The Associated Press’ education coverage receives financial support from multiple private foundations. AP is solely responsible for all content. Find AP’s standards for working with philanthropies, a list of supporters and funded coverage areas at AP.org.

Wall Street hovers near record highs ahead of new jobs numbers

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By TERESA CEROJANO and MATT OTT, Associated Press

Wall Street was largely unchanged early Thursday, hovering near record levels ahead of new U.S. jobs data that is expected to show unemployment ticked up to the highest rates since late 2021.

Futures for S&P 500, Nasdaq and Dow Jones Industrial Average each inched up less than 0.1% before the bell. Markets are closed Friday for the July 4 holiday.

Treasury yields edged lower ahead of the highly anticipated June jobs report from the Labor Department. Economists believe that hiring slowed again last month as President Donald Trump’s trade wars, federal hiring freeze and immigration crackdown squeezes the American job market.

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Economists project that U.S. employers added 117,500 jobs last month and that the unemployment rate ticked up to 4.3%, which would be the highest since October 2021. However, it’s still low enough to suggest that most American workers continue to enjoy job security.

Also coming Thursday is a separate report from Labor that will show how many people applied for jobless benefits last week. The report is considered a proxy for layoffs.

Though the job market is broadly healthy by historical standards, it appears increasingly under strain as employers contend with fallout from Trump’s policies, especially his aggressive tariffs.

Tariffs raise prices for businesses and consumers alike and the vast majority of economists believe they make the economy less efficient by reducing competition. They also invite retaliatory tariffs from other countries, hurting U.S. exporters and potentially driving businesses to freeze hiring or cut staff.

Many of Trump’s stiff proposed taxes on imports are currently on pause, but they’re scheduled to kick into effect next week. Unless Trump reaches deals with other countries to lower the tariffs, economists fear they could hurt the economy and worsen inflation.

Elsewhere, in Europe at midday, Germany’s DAX and Paris’ CAC 40 each ticked up 0.1%, while Britain’s FTSE 100 gained 0.4%.

Tokyo’s Nikkei 225, which fluctuated between gains and losses during the day, added 0.1% to 39,785.90. In South Korea, the Kospi rose 1.3% to 3,116.27, while Australia’s S&P/ASX 200 slipped 0.1% to 8,589.80.

Hong Kong’s Hang Seng index lost 0.6% to 24,069.94. The Shanghai Composite index added 0.2% to 3,460.15.

Taiwan’s TAIEX gained 1.3% while India’s Sensex rose 0.2%. Vietnam’s VN Index shed earlier gains, slipping 0.2%.

Benchmark U.S. crude lost 14 cents to $67.31. Brent crude, the international standard, shed 21 cents to $68.90.

The dollar traded at 143.85 Japanese yen, up from 143.65 yen. The euro was at $1.1793, up from $1.1790.

On Wednesday, the S&P 500 set a record for the third time in four days and the Nasdaq composite gained 0.9%. The Dow Jones Industrial Average ticked down less than 0.1%.