The number of Americans filing new applications for jobless benefits unexpectedly fell to a seven-week low last week, suggesting employers may be holding on to workers despite other indications of a cooling labor market and creating no urgency for the Federal Reserve to resume its interest rate cuts.

Initial filings for unemployment benefits in Virginia 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 2,829 in the week ending July 5, up from 2,674 the week before, the Labor Department said.

Initial filings for unemployment benefits in Montana 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 511 in the week ending June 21, down from 564 the week before, the Labor Department said.