WASHINGTON -- Applications for U.S. unemployment aid rose modestly last week yet hold near historically low levels despite economic pressures from the Iran war.

The total number of Americans seeking jobless benefits for the week ending June 6 increased by 4000 to 229000 according to the Labor Department report issued Thursday. This figure represents the highest level since early February before U.S. and Israel strikes on Iran but remains viewed as a solid reading. It also exceeded the 216000 new claims projected by analysts polled by FactSet.

Regular unemployment claims serve as a key gauge for layoffs and offer timely insight into labor market conditions across the country.

Although worries persist that Middle East tensions could further weaken hiring trends employment has improved in recent months after a weak 2025 that produced under 200000 job additions. By contrast roughly 1.5 million positions were created throughout 2024.

Employers added an unexpected 172000 jobs in May while the economy has averaged 188000 monthly gains over the three months since the Iran conflict started in late February. This marks the strongest three-month hiring stretch since early 2024. The jobless rate stays low at 4.3 percent.

Job openings climbed in April with employers listing 7.6 million vacancies up from 6.9 million in March and the highest total since May 2024.

The government noted Wednesday that higher fuel costs stemming from the Strait of Hormuz closure near Iran drove consumer inflation to 4.2 percent in May its peak in three years. Although some prices have eased oil and gas costs remain high which can limit household spending and prompt companies to pause hiring plans.

With inflation above the Federal Reserve 2 percent goal most forecasters anticipate that policymakers will leave the benchmark rate unchanged at next weeks meeting. This session marks the first under new Fed Chair Kevin Warsh who succeeds Jerome Powell after his eight-year tenure.

Reduced borrowing costs can support growth and hiring but often fuel higher prices prompting several Fed officials to signal openness to a rate increase this year. Such a move might ease inflation yet typically discourages business expansion and new hires.

Enthusiasm surrounding artificial intelligence has added uncertainty to employment outlooks because of heavy investment needs and the potential for the technology to reshape or displace certain roles.

Recent workforce reductions have occurred at firms including Verizon UPS Amazon Disney Starbucks and Walmart.

Weekly unemployment claims have settled mostly between 200000 and 250000 since the economy recovered from the pandemic downturn. Hiring however began to slow roughly two years ago and declined further in 2025 amid President Donald Trumps tariffs federal workforce cuts and the lasting impact of elevated interest rates used to tame inflation.

The Labor Department report Thursday indicated that the four-week moving average of claims which smooths weekly swings rose by 4250 to 219000.

The overall count of Americans receiving unemployment benefits for the week ending May 30 surged by 24000 to 1.8 million slightly above analyst expectations.