10:29 AM EST, 12/26/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US unexpectedly declined last week, while continuing claims rose to their highest level since November 2021, government data showed Thursday.

The seasonally adjusted number of initial claims decreased by 1,000 to 219,000 in the week ended Dec. 21, according to the Department of Labor. The consensus was for an increase to a 223,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was left unrevised at 220,000.

The four-week moving average came in at 226,500, rising by 1,000 from the previous week's unrevised average. Weekly unadjusted claims climbed by 22,663 to 274,734.

For the week ended Dec. 14, seasonally adjusted continuing claims totaled 1.91 million, its highest level since Nov. 13, 2021, ahead of the Bloomberg consensus of 1.88 million. Continuing claims jumped by 46,000 from the prior week's level, which was revised down by 10,000. The four-week moving average came in at 1.88 million, increasing by 3,250 from the prior week's downwardly revised average, according to the DOL.

"There is likely still some overhanging impact from the seasonality issues surrounding Thanksgiving, especially in continuing claims," Jefferies US Economist Thomas Simons said in a note. "Although continuing claims are currently at their highest since November 2021, this is a comparison with an extremely flat series over the last two years."

Nebraska saw the highest gain in initial claims at 392 for the week ended Dec. 14, followed by Kentucky and Colorado. The largest decrease was in New York, where claims dropped by 6,807, followed by Texas with 5,405 and California with 5,279.

"The rate of hiring has clearly slowed, based on evidence from a variety of economic data releases, driving the trend in continuing claims higher," according to Simons. "However, the data also shows that the rate of firing/lay-offs has not accelerated accordingly."