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.

Initial filings for unemployment benefits in Indiana rose last week compared with the week prior, the U.S. Department of Labor said Thursday. New jobless claims, a proxy for layoffs, increased to 2,781 in the week ending July 5, up from 2,502 the week before, the Labor Department said.

Initial filings for unemployment benefits in Wisconsin dropped last week compared with the week prior, the U.S. Department of Labor said Thursday. New jobless claims, a proxy for layoffs, fell to 3,410 in the week ending July 5, down from 3,741 the week before, the Labor Department said.