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US initial unemployment claims rose to 229,000 in the week ended June 6, exceeding economists’ expectations, while continuing claims increased, signalling that unemployed workers are taking longer to find jobs.
The number of Americans filing new applications for unemployment benefits rose more than expected last week, signalling a gradual cooling in the US labour market despite steady job creation in recent months.
Initial claims for state unemployment benefits increased by 4,000 to a seasonally adjusted 229,000 for the week ended June 6, according to Labor Department data cited by Reuters. Economists surveyed by Reuters had forecast claims at 219,000.
The rise partly reflected seasonal volatility at the beginning of summer, when some non-teaching school employees file for unemployment benefits during the long break. However, economists are closely watching the trend for signs of weakening labour demand.
Continuing claims, which reflect the number of people receiving benefits after an initial week and are viewed as a proxy for hiring conditions, rose by 24,000 to 1.795 million for the week ended May 30. The increase suggests that some unemployed workers are facing longer job searches.
The median duration of unemployment climbed to 11.6 weeks in May, the highest level since November 2021, compared with 11 weeks in April. The number of people unemployed for 27 weeks or longer also reached its highest level since December 2021.
Despite signs of moderation, the broader labour market has remained resilient. The US economy recorded a third consecutive month of solid payroll gains in May, while the unemployment rate remained unchanged at 4.3 per cent.
However, businesses appear more cautious about hiring. A recent NFIB survey showed small business hiring plans dropping to their lowest level in six years, with economists pointing to tariff uncertainty and geopolitical risks as factors weighing on confidence.
The latest labour data comes alongside renewed inflation concerns after producer prices accelerated sharply in May, complicating the outlook for the Federal Reserve as it balances inflation risks with emerging signs of labour market softness.
First Published:
June 11, 2026, 22:07 IST
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