12:22 PM EDT, 05/30/2024 (MT Newswires) -- Weekly applications for unemployment insurance in the US rose more than Wall Street's expectations, while the four-week moving average reached its highest level since Sept. 16, according to government data.

The seasonally adjusted number of initial claims increased by 3,000 to 219,000 in the week ended May 25, the US Department of Labor said Thursday. The consensus was for a 217,000 level in a survey of analysts compiled by Bloomberg. The previous week's reading was revised up by 1,000 to 216,000.

The four-week moving average came in at 222,500, rising by 2,500 from the prior week's average, which was revised up by 250. "Still, the average is lower than it was during the comparable week last year, when it was (227,000)," Jefferies Economist Thomas Simons wrote in a note. Unadjusted claims advanced by 2,898 on a weekly basis to 195,615.

For the week ended May 18, seasonally adjusted continuing claims totaled 1.79 million, just shy of the Bloomberg consensus for about 1.8 million. Continuing claims rose by 4,000 from the previous week's level that was revised down by 7,000. The four-week moving average was about 1.79 million, growing by 5,750 from the previous week's downwardly revised average, according to the DOL.

Despite the increase in continuing claims, "the level remains in a range that suggests the labor market remains tight," according to Simons. "Continuing claims are still very low by any historical standard, and we still see the data as supporting the notion that people who lose a job are able to find a new one with relative ease."

Texas saw the highest gain in initial claims for the week ended May 18 at 798, followed by Michigan and Missouri. The largest decrease was in California, where claims fell by 2,460, followed by Indiana with 1,105 and New York with 626.

"Although we still see layoff announcements in the headlines, they have not yet translated into higher claims counts, this week's print notwithstanding," Simons said. "We are not sure if this is because of generous severance packages or if laid off workers are easily finding another job, or if the businesses simply aren't letting as many people go as the announcements suggest."