Amid rising trade tensions and a tight labor market, U.S. businesses are hanging on to their employees and not laying off workers.

Initial claims for state unemployment benefits dropped to 211,000, down 1,000 from the week prior and below expectations for 215,000.

Jobless claims are a proxy for layoffs. When President Donald Trump began raising tariffs, critics said the import duties and retaliation would cost American workers jobs. Instead, unemployment has plunged to 50 year lows, jobless claims have remained low, job creation is much stronger than expected, and workforce participation has expanded.