U.S. initial jobless claims climbed to 229,000 in the week ended June 6, the highest since early February and above market forecasts, though the reading remains low by historical standards amid ongoing Iran war economic headwinds.

Key Highlights

  • Claims at 229,000: Initial jobless claims rose 4,000 to 229,000 in the week ended June 6, the highest since early February 2026 and the third consecutive weekly increase.
  • Above consensus: The reading exceeded the median of 220,000 and the forecast of 219,000.
  • Four-week average rises: The four-week moving average increased 4,250 to 219,000, its third straight weekly gain.
  • Continuing claims higher: Continuing claims rose 24,000 to 1,795,000 in the week ended May 30, above the 1,780,000 consensus.
  • Federal employee claims tick up: Claims filed by federal employees rose 89 to 553, continuing to draw scrutiny amid ongoing federal workforce reductions.

U.S. applications for unemployment benefits climbed to a three-month high last week, the Labor Department reported Thursday, exceeding market forecasts as seasonal volatility around the Memorial Day holiday and the start of the school summer break contributed to the jump.

Initial claims for state unemployment benefits rose by 4,000 to a seasonally adjusted 229,000 for the week ended June 6, the highest level since early February 2026, before the United States and Israel launched their first strikes on Iran. The reading exceeded the Bloomberg survey median of 220,000 and the consensus of approximately 219,000. The prior week's reading of 225,000 was unrevised.

The four-week moving average, which smooths short-term volatility, rose by 4,250 to 219,000, its third consecutive weekly increase. Unadjusted initial claims rose 39,713 to 228,276, with Pennsylvania, California, and Minnesota among the states recording the largest increases.

Continuing claims, which measure the number of people currently receiving unemployment benefits and serve as a proxy for the pace at which workers are finding new jobs, rose by 24,000 to 1,795,000 in the week ended May 30. This exceeded the consensus estimate of 1,780,000. The four-week average for continuing claims rose 4,750 to approximately 1,780,500.

New filings tend to be elevated in the period following the late-May Memorial Day holiday and the start of the school summer break, when non-teaching school employees typically submit unemployment claims. Economists have flagged the need for several more weeks of data before any reassessment of the broader labor market direction.

Claims filed by federal employees rose by 89 to 553, a figure watched closely in the context of the administration's ongoing efforts to reduce the federal headcount.

Despite the weekly increase, initial claims remain at historically low levels. The Labor Department noted the data reflects filings through the prior Saturday, while continuing claims carry a one-week lag. Hiring has picked up in recent months following a weak 2025 that saw fewer than 200,000 net job gains over the full year.