Jobless claims remain low in the face of rising global trade tensions

Unemployment claims rose less than expected at the end of July, Reuters reports. Labor Department data released Thursday shows that economists' fears of a residual effect from global trade tensions are so far unfounded.

During the last week of July, unemployment benefit claims rose by 1,000, bringing the total to 218,000. The increase was a modest uptick from the previous week, when the 208,000 claims marked the lowest number since 1969.

"Claims had started to move higher in mid-June, leading us to question whether it could be the fallout of protectionist measures,” Blerina Uruci, an economist at Barclays, told Reuters. “The decline over the past few weeks, however, suggests no such effect on labor markets yet."

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Economists had predicted that the numbers would rise more substantially, forecasting around 220,000 claims. Some cited rising tensions due to the Trump administration's tariffs on imported goods from China and the European Union, foreseeing a disrupted supply chain that could affect employment numbers. However, the Labor Department said that "the labor market has continued to strengthen and economic activity has been rising at a strong rate." Read more at Reuters.