Jobless Claims Hit New Low

States reported that 229,000 workers filed for new unemployment benefits during the week ending June 18, a decrease of 2,000 from the previous week's revised level. The four-week moving average of 1.3 million workers continuing to claim unemployment benefits is the lowest level for this average since Jan. 3, 1970.

Jobless claims have remained near pre-pandemic levels since early this year, as employers have generally avoided laying off workers given historically high demand, though it is being reported that some layoffs are starting to occur in a variety of sectors due to slowing business growth and rising labor costs.

The unemployment rate held at 3.6 percent in May, close to what is considered full employment. And the U.S. labor market overall remains strong, but is showing some initial signs of cooling. U.S. employers added 390,000 jobs in May—a robust gain that also was below the average monthly pace of growth over the past year.