01:27 PM EDT, 03/14/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US unexpectedly fell, while continuing claims rose, according to government data released Thursday.

The seasonally adjusted number of initial claims dropped by 1,000 to 209,000 in the week ended March 9, the US Department of Labor said. The consensus was for an increase to 218,000 in a survey of analysts compiled by Bloomberg. The previous week's reading was revised down by 7,000 to 210,000.

The four-week moving average was 208,000, down by 500 from the prior week's average, which itself was revised down by 3,750 to 208,500. Unadjusted claims decreased by 14,472 on a weekly basis to 199,952.

For the week ended March 2, seasonally adjusted continuing claims totaled 1.81 million, below the Bloomberg consensus of 1.91 million. Continuing claims jumped by 17,000 from the previous week's level that was revised down by 112,000 to 1.79 million. The four-week moving average was 1.8 million, rising by 2,000 from the previous week's downwardly revised average.

The latest report included certain annual revisions to previously reported continued claims that were "more significant, with much of the previous volatility smoothed out," Oxford Economics Lead US Economist Nancy Vanden Houten said in a note. "The revised data for continued claims are consistent with a job market that is showing some signs of loosening but is still relatively strong," Vanden Houten wrote.

Massachusetts saw the largest drop in initial claims for the week ended March 2 at 3,894, followed by Rhode Island and Oregon. The biggest increase was in New York, where claims jumped by 14,176, followed by California and Texas, according to the Labor Department.

Oxford Economics expects the Federal Reserve's monetary policy committee to start cutting interest rates at its May meeting. "But a healthy labor market and sticky inflation data have increased the risk the first cut comes later," according to the note.