US jobless claims retreat from 10-month peak

US unemployment claims fell in the week ended June 15, reversing the rise to their highest level in 10 months.

Labor Department data showed today, June 20, that initial jobless claims decreased by 5,000 to 238,000 applications for the week, compared to forecasts for a decline to 235,000 applications, from the previous week’s unrevised reading of 243,000.

The four-week moving average for new claims, a better measure of labor market trends, added 5,500 to 232,750 applications, from last week's unadjusted average of 227,250.

Several economists considered that the uptick in jobless claims last week as evidence for seasonal fluctuations, which may have been related to end of the school year, in addition to the recent hike in minimum cap for wages in California.