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.

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.Initial claims decreased by 5,000 to 227,000 in the week ended July 5.

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.