US jobless aid filings rise to 229,000 last week, remain historically
low despite Iran war headwinds
[June 12, 2026] By
MATT OTT
WASHINGTON (AP) — U.S. applications for jobless aid rose modestly last
week, but remain at a historically low level despite economic headwinds
brought on by the war in Iran.
The number of Americans filing for unemployment aid for the week ending
June 6 rose by 4,000 to 229,000, the Labor Department reported Thursday.
That’s the most since early February, before the U.S. and Israel
launched attacks on Iran, but still considered a healthy level. It's
also more than the 216,000 new applications forecast by analysts
surveyed by the data firm FactSet.
Weekly filings for unemployment benefits are considered a proxy for 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 could 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 Wednesday 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.
With inflation well above the Federal Reserve’s 2% target, most analysts
expect officials at the U.S. central bank to stand pat on its benchmark
interest rate when they meet next week. That meeting will be the first
with new Fed Chair Kevin Warsh, who replaces Jerome Powell after his
eight-year run as the U.S. central bank’s leader.
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A hiring sign is displayed at a restaurant in Niles, Ill., Thursday,
May 14, 2026. (AP Photo/Nam Y. Huh, File)
 Lower interest rates can boost the
economy and hiring, but also tend to stoke inflation, leading a
number of Fed policymakers to say they are actually willing to
consider an interest rate hike this year. That could potentially
help bring inflation down, but higher borrowing costs generally make
businesses more reluctant to hire.
Optimism over artificial intelligence has also injected a degree of
uncertainty about the job market due to the investment required to
develop it and because the powerful technology could alter or even
replace some jobs.
Among the companies that have cut jobs recently are Verizon, UPS,
Amazon, Disney, Starbucks and Walmart.
Weekly jobless aid applications have stabilized in a range mostly
between 200,000 and 250,000 since the U.S. economy emerged from the
pandemic recession. However, hiring began slowing about two years
ago and tapered further in 2025 due to President Donald Trump’s
tariffs, his purge of the federal workforce and the lingering
effects of high interest rates meant to control inflation.
The Labor Department’s report Thursday showed that the four-week
moving average of jobless claims, which evens out some of the weekly
volatility, rose by 4,250 to 219,000.
The total number of Americans filing for unemployment benefits for
the previous week ending May 30 jumped by 24,000 to 1.8 million,
slightly more than analysts predicted.
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