Applications for U.S. unemployment benefits declined last week, reinforcing signs that the labor market remains in a “low-fire” mode of stability.
Initial claims dropped by 4,000 to 226,000 in the week ended June 13, according to Labor Department data released on June 18. The figure slightly exceeded the median forecast of 225,000 from a Bloomberg survey of economists.
However, continuing claims—a proxy for the number of people actively receiving benefits—rose to 1.81 million in the previous week.
Labor Market Remains Resilient
The figures suggest the labor market continues to show resilience despite the energy-price shock triggered by the Iran war. This outlook was reinforced by May’s stronger-than-expected jobs report, which showed employers added 172,000 jobs.
The data eased concerns about sharply slowing hiring and prompted investors to increase bets on Federal Reserve interest-rate hikes.
Moving Average Hits Highest Since December
The four-week moving average of initial claims—which helps smooth out week-to-week volatility—rose to 223,250, the highest level since December.