U.S. Weekly Jobless Claims Fall

The number of Americans filing new claims for unemployment benefits fell recently, but overall strength in the job market persisted despite a gradual cooling, Lucia Mutikani reported for Reuters.

Loosening labor market conditions have led to inflation pressures subsiding and keeping a rate cut this year on the table.

Initial claims for state unemployment benefits declined by 5,000 to a seasonally adjusted 238,000 for the week ended June 15, the Labor Department said on Thursday.

That reversed 5,000 of the surge in the prior week, which had pushed up claims to a 10-month high. Economists polled by Reuters had forecast 235,000 claims in the latest week.

Labor market momentum is ebbing in tandem with the overall economy following 525 basis points worth of interest rate hikes from the Federal Reserve since 2022 to tame inflation.

Loosening labor market conditions have led to inflation pressures subsiding and keeping a rate cut this year on the table. The US central bank has maintained its benchmark overnight interest rate in the current 5.25%-5.50% range since last July.s