Published Thu, Jun 26, 2025 · 09:29 PM
[WASHINGTON] Recurring applications for US unemployment benefits rose to the highest since November 2021, extending a sharp increase over the past 1½ months and signalling more people are staying out of work for longer.
Continuing claims, a proxy for the number of people receiving benefits, increased to 1.97 million in the week ended June 14, according to Labor Department data released on Thursday (Jun 26). That was above all estimates in a Bloomberg survey.
The elevated level of continuing claims aligns with other surveys and data pointing to a slowdown in hiring. This week a measure of job availabilities from a Conference Board survey that’s closely watched by economists fell to the lowest since March 2021.
Initial claims, however, decreased, to 236,000 in the week ended June 21, lower than economists anticipated. The four-week moving average of new applications, a metric that helps smooth out volatility, dipped to 245,000. The subdued number of new claims is consistent with relatively low levels of layoffs.
The US central bank left interest rates steady last week, as policymakers await clarity on the potential impact of tariffs on the economy. Federal Reserve chair Jerome Powell said at the time the jobs market wasn’t “crying out for a rate cut.” Speaking to lawmakers on this week, Powell reiterated that labour conditions remain solid. BLOOMBERG
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