12:57 PM EST, 12/12/2024 (MT Newswires) -- Weekly applications for unemployment insurance unexpectedly increased, while continuing claims rose more projected, the US Department of Labor said Thursday.

The seasonally adjusted number of initial claims increased by 17,000 to 242,000 in the week ended Dec. 7. The consensus was for a 220,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was revised up by 1,000 to 225,000.

The four-week moving average came in at 224,250, up by 5,750 from the prior average that was revised up by 250. Weekly unadjusted claims jumped by 99,140 to 310,366.

Seasonally adjusted continuing claims totaled 1.89 million for the week ended Nov. 30, narrowly exceeding the Bloomberg consensus of 1.88 million. Continuing claims increased by 15,000 from the previous week's unrevised level.

The four-week moving average for continuing claims totaled 1.89 million, remaining at the highest level since Nov. 27, 2021. The average was up 3,500 from the prior week's upwardly revised average, according to the DOL.

Wisconsin saw the highest increase in initial claims for the week ended Nov. 30, at 1,785, followed by North Dakota with 1,004 and Kentucky with 731. The largest decrease was in California, where claims declined by 10,113, followed by Texas and Florida.

"Continued claims remain elevated in states that have suffered recent layoffs or were most impacted by the early fall hurricanes," Nancy Vanden Houten, lead economist at Oxford Economics, said in remarks emailed to MT Newswires. "The elevated level of continued claims is consistent with other data showing that unemployed workers are finding (it) more difficult to find new jobs."

Last week, the Bureau of Labor Statistics reported that the US economy added 227,000 nonfarm jobs in November, more than Wall Street expected. The unemployment rate edged up to 4.2% from 4.1% month to month.

The market is almost fully pricing in another 25-basis-point interest rate cut by the Federal Reserve next week, according to the CME FedWatch tool.