U.S. jobless claims drop to 226,000 as unemployment rate stays at a historically low 4.3%

The number of Americans applying for jobless aid fell modestly last week as layoffs remained in the same historically low range of recent years.U.S. applications for unemployment benefits in the week ending June 13 dropped by 4,000 to 226,000, the Labor Department reported Thursday. That’s in line with the 225,000 new applications forecast by analysts surveyed by the data firm Fact Set.Weekly filings for unemployment benefits are considered representative of U.S. layoffs and are close to a real-time indicator of the health of the job market.Despite concerns that the conflict in the Middle East would further squeeze a flagging labor market, hiring has picked up in recent months following a miserable 2025 that saw fewer than 200,000 job gains. For comparison, about 1.5 million jobs were added in 2024.U.S. employers delivered a surprising 172,000 new jobs in May and the economy is averaging 188,000 job gains in the three months since the Iran war began in late February. That’s the best three months of hiring since early 2024. The unemployment rate remains historically low at 4.3%.Job openings also rose in April as employers posted 7.6 million vacancies, up from 6.9 million in March and the most since May 2024.The government reported last week that rising gas prices — triggered by the closure of the Strait of Hormuz off Iran’s southern border — pushed U.S. consumer inflation in May to 4.2%, its highest level in three years. Despite recent declines, prices for oil and gas remain elevated, which can squeeze consumers’ budgets and make businesses think twice about hiring.Earlier this week, Iran and the U.S. agreed to a deal to end the war and allow Iran to reopen the Strait of Hormuz and sell its oil without restrictions.With inflation still well above the Federal Reserve’s 2% target, officials at the U.S. central bank left the benchmark interest rate where it was on Wednesday. It was the first meeting with new Fed Chair Kevin Warsh, who replac