WASHINGTON—The number of Americans filing new claims for unemployment benefits fell more than expected last week, while layoffs plunged to a 21-year low in June as companies held on to their workers amid labor shortages. Initial claims for state unemployment benefits dropped 51,000 to a seasonally adjusted 364,000 for the week ended June 26, the Labor Department said on Thursday. But the pace of decline has moderated from May, when claims dropped below 400,000 for the first time since March 2020, when mandatory shutdowns of nonessential businesses were enforced to slow the first wave of COVID-19 infections. Claims increased in mid-June, interrupting a stretch of six straight weekly decreases. Economists polled by Reuters had forecast 390,000 applications for the latest week. Claims have dropped from a record 6.149 million in early April 2020, but are still above the 200,000–250,000 range that is viewed as consistent with a healthy labor market. …
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