The number of Americans filing for unemployment benefits fell by 26,000 to 239,000 in the week ending June 24, the lowest level since mid-February 2021. This was the biggest weekly drop in jobless claims since April 2020.
The decline in jobless claims is a sign that the labor market remains strong, even as the Federal Reserve raises interest rates in an effort to cool inflation. The unemployment rate is currently at 3.6%, which is near a 50-year low.
However, there are some signs that the labor market may be starting to cool. The number of job openings has declined in recent months, and some companies are starting to slow hiring. It remains to be seen how the labor market will fare as the Fed continues to raise interest rates.
Here are some additional details from the report:
- The four-week moving average of initial jobless claims, which smooths out week-to-week volatility, fell by 2,250 to 242,500.
- The number of people continuing to receive unemployment benefits fell by 19,000 to 1.742 million in the week ending June 17.
- The labor force participation rate, which measures the percentage of the population that is either working or looking for work, was unchanged at 62.3%.
Overall, the latest jobless claims report is a positive sign for the labor market. However, it remains to be seen how the labor market will fare as the Fed continues to raise interest rates.
