12:16 PM EDT, 08/01/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US rose more than expected, reaching the highest level in nearly a year, the US Department of Labor said Thursday.

The seasonally adjusted number of initial claims increased by 14,000 to 249,000 in the week ended July 27, its highest point since Aug. 5, 2023, government data showed. The consensus was for a 236,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was left unrevised at 235,000.

The four-week moving average came in at 238,000, up by 2,500 from the prior week's unrevised average. Unadjusted claims declined by 10,012 on a weekly basis to 215,827.

"Claims were partly boosted by the fallout from Hurricane Beryl, which left over 1 million electric customers in blackout for the better part of a week," Jefferies US Economist Thomas Simons said.

For the week ended July 20, seasonally adjusted continuing claims totaled 1.88 million, its highest reading since Nov. 27, 2021, ahead of the Bloomberg consensus for 1.86 million. Continuing claims jumped by 33,000 from the previous week's level that was revised down by 7,000. The four-week moving average advanced to its highest level since Dec. 4, 2021, at 1.86 million, gaining 5,250 from the previous week's downwardly revised average, according to the DOL.

Texas saw the highest increase in initial claims for the week ended July 20 at 5,962, followed by Tennessee and Delaware. The largest decrease was in New York, where claims declined by 8,091, followed by Michigan with 6,941 and California with 5,326.

The Federal Reserve's monetary policy committee held its benchmark lending rate steady Wednesday, its eighth straight pause. Job growth has moderated, while the unemployment rate has moved up but continues to be low, the central bank's Federal Open Market Committee said at the time.

Fed Chair Jerome Powell characterized the labor market as gradually cooling, and approaching the conditions that prevailed in 2019, according to Simons. "This week's claims data is consistent with this characterization in our view," Simons said.

The Bureau of Labor Statistics is expected to report on Friday that the US economy added 175,000 nonfarm jobs in July, which would mark a decrease from the 206,000 gain posted for the month prior.

Meanwhile, US-based employers cut 25,885 jobs last month, down 47% from June but up 9% from a year ago, according to a separate report by Challenger, Gray & Christmas. "The job market is indeed cooling, with hiring at the lowest point in over a decade," said Andrew Challenger, the company's senior vice president. "While we are seeing increased cuts in manufacturing sectors, both consumer and industrial, most industries are cutting below last year's levels."