The number of Americans filing new applications for unemployment benefits fell last week, remaining at a historically low level.
Initial claims for state unemployment benefits dropped 5,000 to a seasonally adjusted 245,000 for the week ended June 14, the Labor Department said Wednesday. This was in line with the 245,000 claims economists polled by Reuters had forecast.
The report was released a day early because of the Juneteenth National Independence Day holiday Thursday.
Claims are in the upper end of their range for this year and could remain there, with non-teaching staff in some states eligible to file for unemployment benefits during the summer school holidays. The unemployment claims stayed at levels consistent with a further loss of labor market momentum in June.
Though some technical factors accounted for the elevation in claims, there has been a rise in layoffs, with economists saying President Donald Trump’s broad tariffs had created a challenging economic environment for businesses. The claims data covered the period during which the government surveyed businesses for the nonfarm payrolls component of June’s employment report.
Federal Reserve officials wrapping up their two-day policy meeting on Wednesday are expected to leave the U.S. central bank’s its benchmark overnight interest rate in the 4.25%-4.50% range, where it has been since December, while monitoring the economic fallout from the import duties and the conflict between Israel and Iran.
