The number of Americans applying for initial unemployment benefits fell last week, with layoffs remaining at the historically low level of recent years. 

The number of Americans applying for benefits for the week ending June 13 decreased by 4,000 to 226,000, the Labor Department reported on Thursday. This aligned with the forecasts by analysts surveyed by the financial data firm FactSet, which predicted around 225,000 new applications, the Associated Press reported.

Applications for unemployment benefits are considered to track closely the number of layoffs in a certain period and provide a snapshot of the condition of the job market in real-time. 

Hiring has also increased in recent months. 

U.S. employers created 172,000 new jobs in May, and in the three months since the Iran war began in late February, the economy averaged 188,000 job gains, the best three months for hiring since early 2024.

Job openings also increased in April with 7.6 million job vacancies, an increase from 6.9 million in March and the highest since May 2024. The unemployment rate is also at a historically low 4.3%.

The data show signs of significant improvement from 2025 during which fewer than 200,000 jobs were added. The rate was impacted by President Donald Trump’s tariffs, cuts to the federal workforce, and the effects of high interest rates meant to curb inflation. In comparison, 1.5 million jobs were added in 2024.

The government last week reported that rising gas prices, triggered by the closing of the Strait of Hormuz, pushed U.S. consumer inflation rates to 4.2% in May, the highest level in three years. High prices for gas and oil can strain consumer budgets and make businesses reluctant to hire. 

However, the Iran-U.S. agreement to end the war earlier this week, with an agreement to reopen the Strait of Hormuz and provide Iran a pathway to sell oil without U.S. sanctions, spurred an immediate decrease in average gas prices to below $4 per gallon. 

The Labor Department also reported that the four-week moving average of jobless claims rose by 4,000, providing an insight into the broader trend when accounting for week-to-week volatility. 

Meanwhile, the total number of continuing claims of Americans applying for unemployment benefits for the week ending June 6 increased by 24,000 to 1.81 million, slightly higher than analysts forecasted.

Christina Park is a reporter for Just the News. Follow her on X for more coverage.