12:11 PM EDT, 10/10/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US rose more than expected, reaching its highest level since August 2023, government data showed Thursday.

The seasonally adjusted number of initial claims jumped by 33,000 to 258,000 in the week ended Oct. 5, its highest count since Aug. 5, 2023, 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 225,000.

The four-week moving average came in at 231,000, increasing by 6,750 from the prior unrevised average. Unadjusted claims climbed by 53,570 on a weekly basis to 234,780.

"Claims rose markedly in some of the states most impacted by Hurricane Helene and the Boeing ( BA ) strike, although some unimpacted states saw large increases as well," Oxford Economics Lead US Economist Nancy Vanden Houten said in emailed remarks to MT Newswires. "Claims will likely continue to be elevated in states affected by Helene, Hurricane Milton and the Boeing ( BA ) strike until it's resolved."

Milton, which made landfall Wednesday evening, was moving off the Florida east coast this morning, according to information posted on the National Weather Service's website. "Gradual weakening is expected with Milton forecast to become a powerful extratropical low tonight well off the southeast US coast."

Earlier this week, Boeing ( BA ) withdrew its latest pay offer to striking workers following a breakdown in negotiations with the International Association of Machinists and Aerospace Workers.

These impacts are likely to be seen as temporary by the Federal Reserve, with Vanden Houten expecting the central bank to lower rates by 25 basis points at its next policy meeting in November. The Fed reduced its benchmark lending rate by 50 basis points to a 4.75% to 5% range in September.

For the week ended Sept. 28, seasonally adjusted continuing claims totaled 1.86 million, ahead of the Bloomberg consensus for 1.83 million. Continuing claims surged by 42,000 from the previous week's average, which was revised down by 7,000. The four-week moving average came in at 1.83 million, rising by 4,500 from the prior week's downwardly revised average, according to the DOL.

Michigan saw the highest increase in initial claims for the week ended Sept. 28, at 1,187, followed by Washington and Indiana. The largest decrease was in Georgia, where claims declined by 1,237, followed by Florida and Texas.

Last week, the Bureau of Labor Statistics reported that the US economy added more jobs than expected in September while the unemployment rate edged down.

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