US Weekly Unemployment Claims Fall More Than Forecast, Indicating Labor Market Stability

The number of new unemployment benefit applications in the United States declined more than economists had expected during the week ending June 20, suggesting that the country's labor market continues to remain stable.

According to the U.S. Labor Department, initial jobless claims fell by 12,000 to a seasonally adjusted 215,000. Economists surveyed by Reuters had projected that claims would total 225,000 for the week.

The report covered the period that included the Juneteenth public holiday, which may have contributed to the larger-than-expected decline. Seasonal adjustments can also be less reliable at this time of year because some non-teaching school employees become eligible for unemployment benefits during the summer break.

Although weekly claims have generally stayed near the upper end of their 190,000 to 230,000 range in 2026, the data has not pointed to a significant weakening of the labor market. Employers have largely avoided broad layoffs despite higher business costs linked to the U.S.-led conflict with Iran, though hiring activity has remained cautious.

Continuing claims, which represent people still receiving unemployment benefits after their initial claim and can indicate hiring conditions, increased by 21,000 to 1.821 million in the week ending June 13.

The U.S. unemployment rate has remained at 4.3% for the past three months. However, slower hiring has resulted in longer job searches for many unemployed workers. Recent college graduates are also finding it more difficult to secure entry-level jobs, with some companies increasingly using artificial intelligence for certain early-career roles.

Government data released earlier this month showed the median duration of unemployment rose to 11.6 weeks in May, up from 11.0 weeks in April, marking the longest period since November 2021.