New US Unemployment Claims Dip to Lowest Level Since 2021

After three weeks of increases, America’s unemployment numbers are trending down.

Figures released Thursday (June 29) by the U.S. Department of Labor showed initial unemployment claims — typically seen as a sign of layoffs — dropping by 26,000 to 239,000. This decline followed a series of jumps in claims to numbers not since fall 2021.

“We have no specific explanation for this sudden dip, after three straight weeks in a narrow range from 262K to 265K, but observations for individual weeks always have to be viewed with skepticism, especially when they move against the established trend in claims and other data,” said Contingent Macro Research analysts in a note to clients, the Associated Press reported Thursday.

The data came one day after comments from Federal Reserve Chairman Jerome Powell suggesting more interest rate increases are ahead for the country.

“We believe there’s more restriction coming,” Powell said Wednesday (June 28), according to CNBC. “What’s really driving it … is a very strong labor market.”

If the jobs market is weakening, it might be something consumers have long been expecting, as research for PYMNTS’ June “Consumer Inflation Sentiment” report showed that concerns among Americans about current and near-future economic conditions are creeping back up.

“From the January low of 28%, the share of consumers extremely concerned about current and near-future economic conditions has steadily increased, reaching 32% in May,” PYMNTS wrote earlier this month.

This sentiment could be at least partially fueled by slowing wage growth, even as prices continue creeping up. Research for the same report measured consumers’ change in income versus costs, painting an unpleasant picture.

Meanwhile, this week has seen a few notable reports of layoffs, including one Wednesday at Google, which is cutting an unspecified number of jobs at its mapping app Waze as it consolidates that business with its own mapping products.

And stock brokerage app Robinhood let go of about 150 workers, or 7% of its staff, Monday (June 26).

“We’re ensuring operational excellence in how we work together on an ongoing basis,” a company spokesperson told PYMNTS at the time. “In some cases, this may mean teams make changes based on volume, workload, org design and more.”