12:24 PM EST, 12/19/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US declined more than expected, government data showed Thursday.

The seasonally adjusted number of initial claims fell by 22,000 to 220,000 in the week ended Dec. 14, according to the Department of Labor. The consensus was for a 230,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was left unrevised at 242,000.

The four-week moving average came in at 225,500, rising by 1,250 from the previous week's unrevised average. Weekly unadjusted claims declined by 57,932 to 251,527.

"Initial jobless claims were much lower than expected in the week ended (Dec. 14), as seasonal factors continue to batter the weekly claims data," Oxford Economics Lead Economist Nancy Vanden Houten said in remarks emailed to MT Newswires. "Continued claims fell slightly but remain elevated particularly in states where there have been notable job losses."

Seasonally adjusted continuing claims totaled 1.87 million for the week ended Dec. 7, trailing the Bloomberg consensus of about 1.89 million. Continuing claims decreased by 5,000 from the previous week's level, which was revised down by 7,000. The four-week moving average came in at 1.88 million, slipping by 6,000 from the prior week's downwardly revised average, according to the DOL.

For the week ended Dec. 7, California saw the highest increase in initial claims at 14,411, followed by Texas with 10,011 and New York with 8,926. The largest decrease was in North Dakota, where claims declined by 788.

On Wednesday, the Federal Reserve reduced its benchmark lending rate by 25 basis points and flagged fewer cuts ahead than projected in September. Economic activity has continued to expand at a "solid" rate, while labor market conditions have "generally eased" since earlier in the year, the Fed said in a statement following its two-day meeting. The unemployment rate has edged higher but remains low, according to the Fed.

"The levels of initial and continued claims are consistent with the picture of the labor market described by Fed Chair (Jerome) Powell after yesterday's FOMC meeting: hiring has slowed, but layoffs remain low," Vanden Houten said. "The claims data don't alter our view that the Fed will cut rates three times next year, but the risk is for fewer cuts, especially given the signal sent by Fed officials that they are leaning toward just two cuts."