US jobless aid filings fall to 215,000 last week as layoffs remain low
despite economic headwinds
[June 26, 2026] By
MATT OTT
WASHINGTON (AP) — Fewer Americans applied for jobless aid last week as
layoffs remain low despite economic headwinds that are creating
uncertainty for businesses.
U.S. applications for unemployment benefits in the week ending June 20
fell by 12,000 to 215,000, the Labor Department reported Thursday.
That’s fewer than the 225,000 new applications forecast by analysts
surveyed by the data firm FactSet.
Weekly filings for unemployment benefits are considered representative
of U.S. layoffs and are close to a real-time indicator of the health of
the job market.
Despite concerns that the war in Iran would trip up an already wobbly
labor market, hiring has picked up in recent months following a
miserable 2025 that saw fewer than 200,000 job gains. For comparison,
about 1.5 million jobs were added in 2024.
U.S. employers delivered a surprising 172,000 new jobs in May and the
economy is averaging 188,000 job gains in the three months since the
Iran war began in late February. That’s the best three months of hiring
since early 2024. The unemployment rate remains historically low at
4.3%.
The government issues its June jobs report next week.
Job openings also rose in April as employers posted 7.6 million
vacancies, up from 6.9 million in March and the most since May 2024.
The government also reported Thursday that the Federal Reserve’s
preferred inflation gauge rose to a new three-year high in May as gas
prices peaked due to the closure of the Strait of Hormuz off Iran’s
southern border, where one-fifth of the world’s oil typically passes
every day.
Consumer prices rose 4.1% in May from a year earlier, the largest annual
increase since April 2023, largely driven by more expensive gas. While
energy prices have fallen considerably from their peak during the Middle
East conflict, those higher prices put the squeeze on consumers’ budgets
for months and may have made businesses more reluctant to hire.
Last week, Iran and the U.S. agreed to a deal to end the war and allow
Iran to reopen the Strait of Hormuz and sell its oil without
restrictions.
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 With inflation still well above the
Federal Reserve’s 2% target, officials at the U.S. central bank left
the benchmark interest rate at its most recent meeting last week.
Lower interest rates can boost the economy and hiring, but also tend
to stoke inflation, leading a number of Fed policymakers to say they
are actually willing to consider at least one interest rate hike
this year. That could potentially help bring inflation down, but
higher borrowing costs generally make businesses more reluctant to
hire.
The Federal Reserve has signaled that it could raise interest rates
at least once before the end of the year. Wall Street sees an 85%
chance that the central bank will raise its benchmark interest rate
this year, according to date from CME Group.
Optimism over artificial intelligence has also injected a degree of
uncertainty about the job market due to the investment required to
develop it and because the powerful technology could alter or even
replace some jobs.
Among the companies that have cut jobs recently are Verizon, UPS,
Amazon, Disney, Starbucks and Walmart.
Weekly jobless aid applications have stabilized in a range mostly
between 200,000 and 250,000 since the U.S. economy emerged from the
pandemic recession. However, hiring began slowing about two years
ago and tapered further in 2025 due to President Donald Trump’s
tariffs, his purge of the federal workforce and the lingering
effects of high interest rates meant to control inflation.
Thursday's report showed that the four-week moving average of
jobless claims, which evens out some of the weekly volatility, rose
by 750 to 224,250.
The total number of Americans filing for unemployment benefits for
the previous week ending June 13 increased by 21,000 to 1.82
million.
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