US jobless claims fall to 226,000 as layoffs remain low, labor market stays resilient

The number of Americans filing new applications for unemployment benefits fell last week, indicating that layoffs remain low and that the US labour market continues to show resilience despite broader economic uncertainties.

Initial claims for state unemployment benefits dropped by 4,000 to a seasonally adjusted 226,000 for the week ended June 13, the Labor Department said on Thursday.

Economists polled by Reuters had forecast 225,000 claims.

Although claims have recently moved toward the upper end of their 190,000 to 230,000 range for this year, the labor market has regained momentum after a shaky performance in 2025.

The economy has posted three consecutive months of solid job growth, while the unemployment rate has remained unchanged at 4.3% for the past three months.

Seasonal factors may be influencing claims

Economists noted that unemployment claims often rise at the beginning of summer as some states allow non-teaching school employees to file for benefits during the long holiday period, a Reuters report said.

Seasonal adjustment models used by the government do not always fully account for these fluctuations, contributing to week-to-week volatility in claims data.

The latest claims figures covered the period during which the government surveyed employers for the nonfarm payrolls component of June's employment report.

US employers added 172,000 jobs in May, extending a run of healthy hiring that has been supported in part by low levels of layoffs.

Fed sees labor market remaining stable

The labor market's resilience was also highlighted by the Federal Reserve in its policy statement on Wednesday.

The central bank noted that job gains have kept pace with workforce growth and that the unemployment rate has changed little in recent months.

The Federal Reserve kept its benchmark overnight interest rate unchanged at a range of 3.50% to 3.75%, though updated projections showed policymakers expected borrowing costs to rise this year amid concerns over inflation.

Fed Chair Kevin Warsh said policymakers broadly viewed the labor market as stable.

"Thought that the labor markets were stable," Warsh told reporters, adding that "there were some people around the committee who thought that it was trending better than that."

"I'd say the jobs data has been moving in a good direction," he added.

Hiring remains a weak spot

Despite the low level of layoffs, economists say uncertainty surrounding trade policy and geopolitical tensions, including the conflict in the Middle East, continues to weigh on hiring decisions.

Continuing claims, which reflect the number of people receiving unemployment benefits after an initial week of aid, rose by 24,000 to a seasonally adjusted 1.81 million during the week ended June 6.

The data lags initial claims by one week.

The increase in continuing claims suggests that while companies are not cutting jobs aggressively, unemployed workers are finding it more difficult to secure new positions.

Government data released earlier this month showed the median duration of unemployment rose to 11.6 weeks in May from 11 weeks in April, marking the longest period of joblessness since November 2021.

The divergence between low layoffs and rising continuing claims points to a labor market that remains fundamentally healthy but is becoming increasingly challenging for job seekers trying to re-enter the workforce.