11:50 AM EDT, 10/17/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US fell last week, while continuing claims rose to their highest level since late July, government data showed Thursday.

The seasonally adjusted number of initial claims dropped by 19,000 to 241,000 in the week ended Oct. 12, according to the Department of Labor. The consensus was for a 258,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was revised upwards by 2,000 to 260,000.

The four-week moving average came in at 236,250, increasing by 4,750 from the prior average that was revised up by 500. Unadjusted claims declined by 11,416 on a weekly basis to 224,763.

Claims are still being "boosted" by states impacted by the recent hurricanes and the Boeing (BA) strike, Oxford Economics Lead US Economist Nancy Vanden Houten said in emailed remarks to MT Newswires. "Looking past these factors, we think the claims data are consistent with a labor market that has cooled but isn't collapsing, allowing the (Federal Reserve) to proceed with future rate cuts at a measured pace."

For the week ended Oct. 5, seasonally adjusted continuing claims totaled 1.87 million, its highest point since July 27 and largely in line with the Bloomberg consensus. Continuing claims increased by 9,000 from the previous week's level, which was revised down by 3,000. The four-week moving average came in at 1.84 million, rising by 11,500 from the prior week's downwardly revised average, according to the DOL.

"Continued claims will remain elevated while the Boeing strike continues and those impacted by the hurricanes return to their jobs or find new work," according to Vanden Houten.

Hurricane Milton made landfall last week in Florida, while Helene made landfall in Florida late in September. Last week, Boeing withdrew its latest pay offer to striking workers following a breakdown in negotiations with the International Association of Machinists and Aerospace Workers.

Michigan saw the highest increase in initial claims for the week ended Oct. 5, at 9,389, followed by North Carolina with 8,714 and Ohio with 4,648. The largest decrease was in Wyoming, where claims moved down by 24, followed by Idaho and Louisiana.