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U.S. Weekly Jobless Claims Fall to 215,000 as Signs of Slack Persist

Fewer new filings show layoffs remain low even as rising continued claims and hotter inflation raise the chance of more Federal Reserve rate increases.

Overview

  • Initial claims for state unemployment benefits fell by 12,000 to a seasonally adjusted 215,000 for the week ended June 20, a bigger drop than economists had expected.
  • The four-week moving average of claims inched up to 224,250 and continuing claims — people receiving benefits after the first week — rose to 1.821 million, signaling longer-term weakness for some workers.
  • The median length of unemployment has risen to 11.6 weeks, the longest since late 2021, and recent college graduates report particular difficulty finding entry-level roles.
  • The Fed’s preferred inflation gauge (PCE) jumped to a three-year high in May largely because of energy-price swings tied to disruptions in the Strait of Hormuz, which has increased the odds that policymakers will raise rates again.
  • Job openings climbed to 7.6 million in April, showing demand for workers even as firms hire cautiously; that split — steady vacancy postings alongside slower hiring and longer unemployment spells — is shaping risks for growth, inflation and Fed policy.