US unemployment claims drop to 233,000 in late June

U.S. applications for unemployment benefits declined to 233,000 in the week ended June 28, the Labor Department said Thursday. The figure was down 4,000 from the prior week and marked the lowest level since May 17.

The report came in stronger than economists had anticipated. Analysts surveyed by The Wall Street Journal expected new claims to rise by 4,000 to 240,000, based on the prior week’s initial estimate of 236,000.

Initial jobless claims track newly filed requests for unemployment insurance and are among the timelier readings on labor-market conditions. A lower weekly count can indicate that employers are laying off fewer workers, while higher claims may point to more pressure in the labor market.

The four-week moving average, a measure used to reduce volatility in the weekly data, fell by 3,750 to 241,500, according to the Labor Department. Investors and policymakers often follow that average alongside the headline number because a single week’s reading can move around more sharply than the broader trend.

The latest release adds another data point for markets assessing the durability of U.S. employment conditions. Labor-market indicators are closely watched because they feed into expectations for household income, consumer spending and Federal Reserve policy, though the claims report is only one part of the broader economic picture.

MarketWatch reported the data after the Labor Department’s Thursday release. The report showed no increase in new filings despite expectations for a modest rise, leaving claims below both the prior week’s initial estimate and the Wall Street Journal survey forecast.

This story draws on original reporting from MarketWatch.