12:15 PM EDT, 05/09/2024 (MT Newswires) -- Weekly applications for unemployment insurance rose more than Wall Street's expectations, reaching the highest level since August 2023, government data showed.

The seasonally adjusted number of initial claims advanced by 22,000 to 231,000 in the week ended May 4, the US Department of Labor said Thursday. This marked the highest level since the week ended Aug. 26, 2023. The consensus was for a 212,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was revised up by 1,000 to 209,000.

The four-week moving average came in at 215,000, rising by 4,750 from the prior week's average, which was revised upwards by 250. Unadjusted claims climbed by 19,690 on a weekly basis to 209,324.

"If the higher level of claims persists or if claims rise further, it would be a sign of a further loosening in labor market conditions," Oxford Economics Lead US Economist Nancy Vanden Houten said in a report. "However, one week of data doesn't change our call for the (Federal Reserve) to keep interest rates at current levels until September."

For the week ended April 27, seasonally adjusted continuing claims totaled 1.79 million, just ahead of the Bloomberg consensus for 1.78 million. Continuing claims advanced by 17,000 from the previous week's level that was revised down by 6,000. The four-week moving average was about 1.78 million, decreasing by 6,250 from the previous week's downwardly revised average, according to the DOL.

Iowa saw the highest gain in initial claims for the week ended April 27 at 1,452, followed by Illinois with 1,227. The largest decrease was in California, where claims fell by 5,083, followed by Massachusetts with 3,306 and Oregon with 1,729.

Last week, the Fed's monetary policy committee held its benchmark lending rate steady marking the sixth consecutive pause. At the time, the Federal Open Market Committee said there's been "a lack of further progress" in bringing inflation down in recent months.