June 20 Reuters Fewer Americans enrolled for unemployment benefits for the first time last week, Labor Department data showed on Thursday, though the number of people on benefits rolls overall climbed a week earlier to the highest since January, a sign that the U.S. job market continues to cool.

Meanwhile, separate data from the Census Bureau showed a housing market that continues to struggle under the weight of the high interest rates engineered by the Federal Reserve. Groundbreaking for new homes and permit applications for future residential building projects both fell in May to the lowest level in about four years.

Initial claims for state unemployment benefits declined 5,000 to a seasonally adjusted 238,000 for the week ended June 15, the Labor Department said. That reversed 5,000 of the surge in the prior week, which had pushed up claims to a 10month high.

Economists polled by Reuters had forecast 235,000 claims in the latest week.

Labor market momentum is ebbing in tandem with the overall economy following 525 basis points worth of interest rate hikes from the Fed since 2022 to tame inflation. Loosening labor market conditions have led to inflation pressures subsiding and have financial markets anticipating one or more rate cuts this year despite Fed policymakers39; more hawkish outlook.

The U.S. central bank has maintained its benchmark overnight interest rate in the current 5.255.50 range since last July, and at their meeting last week officials revised down…