US Weekly Unemployment Claims Decline More Than Expected

The number of new unemployment benefit applications in the United States fell more than economists had anticipated during the week ending June 20, pointing to continued stability in the labor market.

According to the U.S. Labor Department, initial jobless claims decreased by 12,000 to a seasonally adjusted 215,000, compared with Reuters' forecast of 225,000 claims.

The reporting period included the Juneteenth public holiday, which may have contributed to part of the sharper-than-expected decline. Seasonal hiring patterns around the end of the school year can also affect claims data, as some non-teaching school employees become eligible for unemployment benefits during the summer break.

Although weekly claims have remained near the higher end of this year's 190,000–230,000 range, the figures do not suggest a significant weakening in the labor market. Employers have largely avoided widespread layoffs despite higher costs linked to the U.S.-led conflict with Iran, though many businesses continue to take a cautious approach to hiring.

Meanwhile, continuing claims—representing people who remain on unemployment benefits after their first week—increased by 21,000 to 1.821 million for the week ending June 13. The data reflects a labor market where hiring remains relatively slow.

The U.S. unemployment rate has stayed at 4.3% for the past three months. At the same time, job seekers are spending longer periods unemployed, with the median duration rising to 11.6 weeks in May. Recent college graduates also continue to face challenges securing entry-level jobs, with some companies increasingly using artificial intelligence for certain roles.