U.S. Unemployment Claims Dipped More Than Expected in June

Posted July 10, 2024

Initial claims for state unemployment benefits for unemployment benefits fell more than expected as interest rates remain steep.

For the ending July 6, initial claims decreased by 17,000 to a seasonally adjusted 222,000 compared to the previous week. This has been the lowest level of initial claims since May. The last week’s average was revised up by 250 from 238,500 to 238,750, according to the U.S. Department of Labor.

The advance seasonally adjusted insured unemployment rate was 1.2 percent for the week ending June 29, unchanged from the previous week’s unrevised rate. Last week, the unemployment rate increased from 4% to 4.1%, the highest rate since November 2021.

The Federal Reserve’s interest rates have remained above its 2% target, however, recent data from the Bureau of Labor Statistics shows inflation cooled in June. While interest rates remain well above the central bank’s preferred target, the recent drop in price could indicate an interest rate slash in September.