WASHINGTON — New applications for unemployment benefits edged lower last week, a sign that layoffs are still hovering near the historically low levels seen in recent years.
The Labor Department said Thursday that jobless claims for the week ending June 13 fell by 4,000 to 226,000. The figure was roughly in line with analysts’ expectations, as those surveyed by FactSet had projected 225,000 new claims.
Because weekly unemployment filings are widely viewed as a timely measure of layoffs, the report offers one of the clearest snapshots of the labor market’s day-to-day health.
The latest data arrives amid worries that conflict in the Middle East could put additional pressure on an already uneven job market. Even so, hiring has strengthened in recent months after a weak 2025, when total job growth had remained below 200,000. By contrast, the U.S. added about 1.5 million jobs in 2024.
In May, employers added a stronger-than-expected 172,000 jobs. Since the Iran war began in late February, the economy has averaged 188,000 new jobs over the past three months, marking the strongest hiring stretch since early 2024. The unemployment rate, meanwhile, remains low at 4.3%.
There were also signs of renewed demand for workers earlier in the spring. Job openings climbed to 7.6 million in April, up from 6.9 million in March and the highest level since May 2024.
The government reported last week that rising gas prices — triggered by the closure of the Strait of Hormuz off Iran’s southern border — pushed U.S. consumer inflation in May to 4.2%, its highest level in three years. Despite recent declines, prices for oil and gas remain elevated, which can squeeze consumers’ budgets and make businesses think twice about hiring.
Earlier this week, Iran and the U.S. agreed to a deal to end the war and allow Iran to reopen the Strait of Hormuz and sell its oil without restrictions.
With inflation still well above the Federal Reserve’s 2% target, officials at the U.S. central bank left the benchmark interest rate where it was on Wednesday. It was the first meeting with new Fed Chair Kevin Warsh, who replaced Jerome Powell after his eight-year run as the U.S. central bank’s leader.
Lower interest rates can boost the economy and hiring, but also tend to stoke inflation, leading a number of Fed policymakers to say they are actually willing to consider at least one interest rate hike this year. That could potentially help bring inflation down, but higher borrowing costs generally make businesses more reluctant to hire.
Optimism over artificial intelligence has also injected a degree of uncertainty about the job market due to the investment required to develop it and because the powerful technology could alter or even replace some jobs.
Among the companies that have cut jobs recently are Verizon, UPS, Amazon, Disney, Starbucks and Walmart.
Weekly jobless aid applications have stabilized in a range mostly between 200,000 and 250,000 since the U.S. economy emerged from the pandemic recession. However, hiring began slowing about two years ago and tapered further in 2025 due to President Donald Trump’s tariffs, his purge of the federal workforce and the lingering effects of high interest rates meant to control inflation.
The Labor Department’s report Thursday showed that the four-week moving average of jobless claims, which evens out some of the weekly volatility, rose by 4,000 to 223,250.
The total number of Americans filing for unemployment benefits for the previous week ending June 6 rose by 24,000 to 1.81 million, slightly more than analysts predicted.
