Initial jobless claims in the US eased by 3,000 from the previous week to 224,000 in the first week of July 2025, contrasting with market expectations that it would increase to 228,000. In turn, outstanding jobless claims eased by 15,000 from the over-three-year high in the prior week to 1,953,000, below expectations of 1,960,000. The results continued to reflect a softening, but still robust, labor market with a slowdown in hiring due to the elevated continued claims, contrasting somewhat with the aggressive downward revisions in payrolls by the BLS. Initial claims filed by federal government employees, which have been under scrutiny following recent dismissals by the Department of Government Efficiency (DOGE), fell by 71 from the four-month high in the earlier week to 637.