US Jobless Claims Steady Amid Labor Market Weakness

U.S. initial jobless claims held at 248,000 for the week ending June 7, matching the previous week and reaching the highest level since October 2024, surpassing economists’ expectations. The four-week moving average climbed to its highest since August 2023, reinforcing indications of a weakening labor market. Continuing jobless claims increased to their highest since November 2021, signaling a broader trend of labor market softening. Contributing factors now include ongoing uncertainty from trade wars, tariff policies, and immigration restrictions, which have limited labor supply and slowed employment growth. Analysts warn of potential downward revisions to earlier job growth data and early signs of rising layoffs. Regional disparities emerged, with significant increases in claims in Iowa and notable declines in Kentucky.