Weekly Jobless Claims Log Surprise Drop as Continuing Applications Hold Steady

10:18 AM EDT, 07/03/2025 (MT Newswires) -- Weekly applications for unemployment insurance unexpectedly declined as continuing claims held steady, government data showed Thursday, while a separate report pointed to stronger-than-expected job growth in June.

The seasonally adjusted number of initial claims fell by 4,000 to 233,000 for the week ended June 28, according to the Department of Labor. The consensus was for a 241,000 reading in a Bloomberg poll. The previous week's reading was revised up by 1,000 to 237,000.

The four-week moving average totaled 241,500, down by 3,750 from the prior week's average that was revised upward by 250. Unadjusted claims rose by 4,032 on a weekly basis to 231,548.

DOL data showed that seasonally adjusted continuing claims held steady at 1.96 million for the week ended June 21, largely in line with analyst projections. The previous week's reading was revised down by 10,000. The four-week moving average grew by 15,500 to 1.95 million, the highest since Nov. 20, 2021.

The Bureau of Labor Statistics separately reported Thursday that nonfarm payrolls rose by 147,000 on a seasonally adjusted basis in June, higher than the consensus view for a 106,000 print.

On Wednesday, data from Automatic Data Processing (ADP) showed that the US private sector unexpectedly lost jobs in June amid hesitancy among employers to hire and replace departing workers. Separately, Challenger Gray & Christmas reported that US job cuts totaled 47,999 last month, down 2% year on year and plunging 49% sequentially.

Last week, Federal Reserve Chair Jerome Powell said that the world's biggest economy was in a "solid position" despite elevated uncertainty levels, while the unemployment rate remains low. Policymakers can continue to wait and evaluate how the economy responds to policy changes before the central bank adjusts its benchmark rate, he told US lawmakers.

President Donald Trump has repeatedly called on the Fed to cut interest rates. On Tuesday, Powell said Trump's tariff rollout has prompted the central bank to hold steady on rates rather than cut.

"The (Fed) is unlikely to be deterred from their current patient stance on monetary policy given the stability of overall employment trends," said Andrew Foran, economist at TD Economics. "This gives the Fed time to continue to assess developing inflation dynamics under tariffs."

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