US Unemployment Claims Dipped to 245,000 Last Week, Hovering at Historically Low Levels

June 18, 2025by Paul Wiseman, Associated Press
US Unemployment Claims Dipped to 245,000 Last Week, Hovering at Historically Low Levels
A hiring sign is displayed at a retail store in Chicago on Monday, March 11, 2024. (AP Photo/Nam Y. Huh, File)

WASHINGTON (AP) — The number of Americans applying for unemployment benefits dipped to 245,000 last week, hovering at historically low levels, the Labor Department said Wednesday.

U.S. jobless claims ticked down from 250,000 the week before. Economists had expected last week’s claims to match that at 250,000.

The four-week average of claims, which smooths out week-to-week volatility, rose to 245,500, the highest since August 2023.

The number of Americans collecting unemployment benefits the week of June 7 slid to 1.95 million.

Weekly unemployment claim are a proxy for layoffs and mostly have stayed within a healthy band of 200,000 to 250,000 since the economy recovered from a brief but painful COVID-19 recession in 2020, which temporarily wiped out millions of jobs.

In recent weeks, however, claims have stayed at the high end of range, adding to evidence that U.S. job market is decelerating after years of strong hiring. So far this year, employers are adding a decent but far from spectacular 124,000 jobs a month, down from an average 168,000 last year and an average of nearly 400,000 from 2021 through 2023.

The hiring slowdown is partly the drawn-out result of 11 interest rate hikes by the Federal Reserve in 2022 and 2023. But Trump’s aggressive and often-erratic trade policies — including 10% taxes on imports from almost every country on earth — are also weighing on the economy, paralyzing businesses and worrying consumers who fear they’ll mean higher prices.

Carl Weinberg of High Frequency Economics is worried that claims remain elevated compared with recent years, when employment has remained very low by historical standards.

“We believe firms have been ‘hoarding’ workers to ensure that they don’t lay off skilled and trained workers by mistake, especially with the labor market still very close to full employment,” Weinberg wrote. “With uncertainty still high … companies have remained hesitant about layoffs. That may be changing.”

The Fed, satisfied that an inflation was coming down, cut rates three times last year. But the central bank has turned cautious in 2025, worried that Trump’s tariffs will rekindle inflationary pressures. The Fed is expected to leave rates unchanged as it wraps up a two-day meeting Wednesday.

A+
a-

In The News

Health

Voting

Economy

US Stocks Move Lower and Pull S&P 500 Back From Its Record

(AP) — U.S. stocks are down in early trading Friday, pulling the market back from all-time highs, as the Trump... Read More

(AP) — U.S. stocks are down in early trading Friday, pulling the market back from all-time highs, as the Trump administration escalates its tariff threats against Canada. The S&P 500 was down 0.4% a day after setting a record high. The benchmark index is on pace... Read More

Trump's Tariffs May Cast a Pall Over Rubio's First Official Trip to Asia

WASHINGTON (AP) — Sweeping tariffs set to be imposed by President Donald Trump next month may cast a pall over his top diplomat’s first... Read More

WASHINGTON (AP) — Sweeping tariffs set to be imposed by President Donald Trump next month may cast a pall over his top diplomat’s first official trip to Asia this week — just as the U.S. seeks to boost relations with Indo-Pacific nations to counter China’s growing influence in the region.... Read More

Federal Debt, AI and a Warning for Future US Investment and Economic Security

The United States is approaching an inflection point, one defined not by a single crisis, but by the confluence of... Read More

The United States is approaching an inflection point, one defined not by a single crisis, but by the confluence of several slowly building threats to its long-term economic and national security. These threats include the growing federal debt that threatens the market for U.S. Treasurys, transformative... Read More

Wall Street Mixed Early as Markets Shrug Off Trump's Tariff Deadlines

(AP) — Wall Street was mixed in quiet trading early Tuesday as markets appeared to shrug off new tariff deadlines... Read More

(AP) — Wall Street was mixed in quiet trading early Tuesday as markets appeared to shrug off new tariff deadlines for U.S. trading partners. Futures for the S&P 500 added 0.1% before the bell, while futures for the Dow Jones Industrial Average shed 0.1%. Nasdaq futures... Read More

Fewer Americans Sought Unemployment Benefits Last Week as Layoffs Remain Low

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, the Labor Department said Thursday, a sign... Read More

WASHINGTON (AP) — The number of Americans applying for unemployment benefits fell last week, the Labor Department said Thursday, a sign that companies aren’t cutting many jobs. Jobless claims for the week ended June 21 dropped 10,000 to 236,000, a historically-low level. The four-week average of claims,... Read More

US Unemployment Claims Dipped to 245,000 Last Week, Hovering at Historically Low Levels

WASHINGTON (AP) — The number of Americans applying for unemployment benefits dipped to 245,000 last week, hovering at historically low... Read More

WASHINGTON (AP) — The number of Americans applying for unemployment benefits dipped to 245,000 last week, hovering at historically low levels, the Labor Department said Wednesday. U.S. jobless claims ticked down from 250,000 the week before. Economists had expected last week's claims to match that at... Read More

News From The Well
scroll top