Jobless Claims Drop, But Continuing Claims Reach Highest Since 2021
The number of Americans applying for unemployment benefits fell by 6,000 to 233,000 for the week ending June 22, according to the Labor Department. Despite this decrease, the total number of people collecting unemployment benefits rose for the eighth consecutive week to 1.84 million, marking the highest level since November 2021. The four-week average of claims also increased by 3,000 to 236,000.
This trend occurs amid the Federal Reserve's ongoing efforts to curb high inflation and slow wage growth by raising its benchmark borrowing rate 11 times. Despite these measures, the economy has so far avoided a recession, buoyed by strong consumer demand and a robust labor market. However, there are signs of increasing jobless benefits, with the unemployment rate rising to 4% in May, even as 272,000 jobs were added.
