The number of Americans filing new applications for jobless benefits unexpectedly fell last week, suggesting employers may be holding on to workers despite other indications of a cooling labor market.

The number of Americans who newly filed for unemployment benefits declined last week, the Labor Department said, although the report suggested that the size of the unemployed population continued to grow in June.

The US Department of Labour (DOL) reported on Thursday that the number of US citizens submitting new applications for unemployment insurance fell to 227K for the week ending July 5. The latest print fell short of initial estimates and the revised figure from the previous week, which stood at 232K after being adjusted from 233K.

Applications for US unemployment benefits fell for a fourth week to the lowest in two months during a period that included the Independence Day holiday.

K to 227K vs. 236K consensus and 232K prior (revised from 233K), according to data released by the Department of Labor on Thursday. Continuing claims for week ended June 28: 1.965M vs. 1.980M consensus and 1.