The US labor market just posted another strong week. Initial jobless claims for the week ending June 20 came in at 215,000, a decrease of 12,000 from the prior week’s revised figure of 227,000 and comfortably below the 225,000 to 226,000 range economists had projected.
The US Department of Labor released the data on June 25, and the takeaway is straightforward: fewer Americans are filing for unemployment benefits than expected.
The numbers in context
The prior week’s reading, for the period ending June 13, came in at 226,000. That means claims dropped meaningfully in just seven days.
The four-week moving average, which smooths out the noise of any single week’s volatility, has been reflecting a similar pattern of relative stability. Weekly claims bouncing around in the low-to-mid 200K range is, historically speaking, quite healthy. For reference, claims consistently below 250,000 are generally considered a sign that the labor market isn’t deteriorating in any significant way.
