The number of initial jobless claims in the United States has declined more than expected

Jobless claims fell more sharply than expected last week, but reading the job market is more difficult this time of year as automakers shut down factories for restructuring. Initial jobless claims fell by 17,000 to 222,000 in the week ending July 6, the Labor Department said Thursday, the lowest level since late May. Initial claims include the Independence Day holiday, which tends to fluctuate around the holidays. Automakers typically close assembly plants starting the week of July 4 to restructure. However, the timing can vary from manufacturer to manufacturer, which could invalidate models the government uses to smooth out seasonally fluctuating data. While this could cause disruption to the initial data, there are growing signs that the labor market is losing steam as the Federal Reserve raises interest rates sharply in 2022 and 2023 and economic activity cools.