US jobless claims slump more than predicted

Initial claims for US unemployment benefits fell by more than anticipated in the week ended June 22, hitting the highest level since late August, due to the huge turnout in California.

Labor Department data showed today, June 27, jobless claims plunged by 6,000 to 233,000 applications for the week. This came against forecasts for a drop to 235,000 applications, from last week’s upwardly-revised reading of 239,000.

Meanwhile, the four-week moving average for new claims, a better measure of labor market trends as it irons out weekly fluctuations, saw a 4,750 uptick to 236,000 applications — the highest since September 2023, from the previous week's revised average of 233,000.

Investors and Federal Reserve policymakers monitor unemployment claims data to track the US labor market, which influences monetary policy decisions.