Weekly Jobless Claims Decline; 4-Week Continuing Applications Average Remains Elevated

10:59 AM EDT, 06/18/2025 (MT Newswires) -- Weekly applications for unemployment insurance in the US declined, while a four-week average of continuing claims remained at their highest level since November 2021, the Department of Labor said Wednesday.

The seasonally adjusted number of initial claims decreased by 5,000 to 245,000 for the week ended June 14, government data showed, in line with a Bloomberg-compiled consensus. The previous week's reading was revised up by 2,000 to 250,000.

The four-week moving average totaled 245,500, its highest level since Aug. 19, 2023, up by 4,750 from the prior week's average that was revised upward by 500. Unadjusted claims fell by 10,160 on a weekly basis to 235,709.

"Despite the slight decline in initial jobless claims in the week ending June 14, both initial and continuing unemployment claims are trending higher, consistent with a gradual softening in labor market conditions," Oxford Economics Deputy Chief US Economist Michael Pearce said in remarks emailed to MT Newswires.

Seasonally adjusted continuing claims totaled 1.95 million for the week ended June 7, topping Wall Street's views for a 1.94 million reading. Continuing claims dropped by 6,000 from the previous week's downwardly revised level. The four-week moving average grew by 13,000 to 1.93 million, representing its highest level since Nov. 20, 2021, according to the DOL.

"Even so, with inflation risks looming, we do not think the economy is weakening by enough to force the Federal Reserve into rate cuts in the coming months," according to Pearce.

The Fed is due to announce its latest monetary policy decision later on Wednesday. Markets are widely expecting the central bank to hold its benchmark lending rate steady, according to the CME FedWatch tool.

The Fed's decision comes amid repeated calls by President Donald Trump for the central bank to lower interest rates. Government data last week showed that consumer inflation unexpectedly decelerated in May, prompting Trump to suggest that the Fed should lower its policy rate by a full percentage point.

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