12:06 PM EDT, 05/23/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US declined more than Wall Street's expectations, according to government data that reflected a robust labor market in the world's largest economy.

The seasonally adjusted number of initial claims fell by 8,000 to 215,000 in the week ended May 18, the US Department of Labor said Thursday. The consensus was for a 220,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was revised up by 1,000 to 223,000.

The four-week moving average came in at 219,750, rising by 1,750 from the prior week's average, which was revised up by 250. Unadjusted claims slipped by 5,663 on a weekly basis to 192,017.

"The low level of jobless claims underlines the continued strength of the labor market, which is still characterized by very few layoffs," Oxford Economics Deputy Chief US Economist Michael Pearce said in an emailed note. "The volatility in initial jobless claims due to the timing of school spring breaks is now firmly in the rear-view mirror."

For the week ended May 11, seasonally adjusted continuing claims totaled 1.79 million, in line with the Bloomberg consensus. Continuing claims advanced by 8,000 from the previous week's level that was revised down by 8,000. The four-week moving average was about 1.78 million, rising by 5,000 from the previous week's downwardly revised average, according to the DOL.

"Job growth is likely to moderate further as the labor market rebalances, but we expect that will continue through a slowdown in hiring, not a notable pickup in layoffs," according to Pearce. "We expect the unemployment rate to inch higher later this year and early next, peaking just north of 4%."

Florida saw the highest gain in initial claims for the week ended May 11 at 1,331, followed by Pennsylvania and Minnesota. The largest decrease was in New York, where claims dropped by 9,543, followed by Illinois with 2,567 and California with 1,189.