Initial jobless claims fall by 10,000 to 236,000 in the week ending June 21, marking the second straight week of declines, according to the Department of Labor. The drop underscores resilience in the labor market, even as hiring remains slow. The continued improvement suggests that businesses are holding onto employees and avoiding major layoffs.

Hiring Slows But Layoffs Do Not Rise

Economists say the back-to-back decreases in claims show layoffs are not accelerating, which helps maintain consumer confidence. The four-week moving average of claims, which reduces week-to-week volatility, held steady. This consistency indicates that sudden waves of layoffs are not occurring, despite broader economic uncertainty and slowdowns in some industries.

California Follows National Trend

In California, the nation’s largest labor market, initial claims dropped by more than 230 for the week ending June 21. This decline mirrors the national trend of fewer first-time filings.

Continuing claims in the state increased to 392,300 in mid-June, reaching their highest level in over three years. Still, most analysts attribute the rise to longer job searches, not an uptick in layoffs. Employers have left more positions open rather than reduce staff, a sign of cautious planning rather than broad cuts.

“Employers remain measured in their hiring plans, but they’re not turning to layoffs as a solution,” said a labor market economist at the University of California.

Consumer Spending Supports Stability

Even as consumer spending slows and trade policy remains unsettled, many industries report stable demand. Retail and hospitality employers continue to maintain staffing levels, and construction has remained strong in several parts of the San Gabriel Valley.

Federal Reserve officials have pointed to labor market strength as a foundation for modest growth expectations through the year’s second half. Although continuing claims climbed, the total remains below the historical average for similar economic cycles.

Outlook for Local Workers

In the San Gabriel Valley and neighboring communities, small business owners report steady payrolls. According to the California Employment Development Department, many employers are adjusting hiring plans but are not implementing major layoffs.

As summer progresses, hiring may stay muted, but the fact that jobless claims fall for a second week shows that businesses remain committed to their teams. This stability benefits communities, as more residents remain employed and continue to support local economies.

For more details on unemployment trends and labor market updates, visit the U.S. Department of Labor