The number of new U.S. jobless claims decreased during the last week but continuing claims data indicates that unemployed workers face growing difficulties in finding new employment.
The Labor Department reported initial unemployment claims decreased by 10,000 to 236,000 for the week ending June 21 which matched expectations. The number of people receiving ongoing unemployment benefits reached almost 2 million during this period which represents the highest level since late 2021.
The summer break of schools and technical elements in data collection produce short-term employment trend distortions that lead to increased long-term unemployment. The increase in benefit claims results from non-teaching staff members who can receive benefits during summer months.
The labor market maintains a stable position because layoffs continue at historically low levels. The Trump administration’s widespread import tariffs have created growing evidence of market weakness which has caused hiring to slow down. Businesses face growing uncertainty about future market demand which makes it harder to plan their workforce.
The Federal Reserve maintained its interest rates at current levels since December and Chairman Jerome Powell informed lawmakers that the central bank monitors tariff impacts on inflation before taking additional actions.
Multiple economists now forecast June unemployment to reach 4.3% because the labor market demonstrates signs of strain although the rate stood at 4.2% in May.
