U.S. filings for unemployment benefits fell to 226,000 last week as layoffs remain historically low
The number of Americans applying for jobless aid fell modestly last week as layoffs remained near historically low levels. Initial unemployment claims for the week ending June 13 dropped by 4,000 to 226,000, the Labor Department reported Thursday, roughly matching the 225,000 expected by analysts surveyed by FactSet.
Weekly claims are a closely watched measure of layoffs and a near real-time indicator of labor market health. Despite concerns that the Middle East conflict would further weaken the job market, hiring has improved in recent months after a weak 2025 that produced fewer than 200,000 jobs. By comparison, about 1.5 million jobs were added in 2024.
Employers added a stronger-than-expected 172,000 jobs in May, and the economy has averaged 188,000 monthly job gains in the three months since the Iran war began in late February, the strongest hiring stretch since early 2024. The unemployment rate remains low at 4.3%.
Job openings rose to 7.6 million in April from 6.9 million in March, the highest level since May 2024.
Last week, the government reported that rising gas prices caused by the closure of the Strait of Hormuz pushed May inflation to 4.2%, the highest in three years. Earlier this week, Iran and the U.S. agreed to end the war, allowing Iran to reopen the strait and resume unrestricted oil sales.
With inflation still above the Fed’s 2% target, officials left interest rates unchanged Wednesday at the first meeting led by Fed Chair Kevin Warsh, who succeeded Jerome Powell. Some policymakers have signaled openness to a rate hike this year. AI-related investment and automation also continue to cloud the job outlook.
Recent layoffs have included Verizon, UPS, Amazon, Disney, Starbucks, and Walmart.
The four-week average of jobless claims rose 4,000 to 223,250. Continuing claims for the week ending June 6 increased by 24,000 to 1.81 million, slightly above forecasts.
