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WASHINGTON, July 10 (Xinhua) -- The number of Americans making new claims for unemployment benefits dropped in the week ending July 5, signaling that companies may be hanging on to employees, according to data released by the U.S. Labor Department on Thursday.

Initial applications for jobless benefits fell for the fourth week in a row in the week, dropping by 5,000 to a total of 227,000, according to the labor department.

A number of factors contributed to the numbers, including temporary factory shutdowns in some states, for the purpose of retooling. Such shutdowns are common in summer.

The data created no urgency for the Federal Reserve to resume its interest rate cuts.