02:42 PM EDT, 05/22/2025 (MT Newswires) -- Weekly applications for unemployment insurance in the US unexpectedly fell, while continuing claims increased, government data showed Thursday.

The seasonally adjusted number of initial claims decreased to 227,000 in the week ended May 17 from the previous week's unrevised reading of 229,000, according to the Department of Labor. The consensus was for a 230,000 print in a survey compiled by Bloomberg.

The four-week moving average totaled 231,500, rising by 1,000 from the prior week's unrevised average. Unadjusted claims declined by 3,635 on a weekly basis to 202,088.

For the week ended May 10, the seasonally adjusted continuing claims totaled about 1.90 million, compared with Wall Street's views for a 1.88 million reading, DOL data showed. Continuing claims increased by 36,000 from the previous week's downwardly revised level. The four-week moving average was up by 17,500 at 1.89 million, the highest since November 2021, according to the report.

The latest data don't offer any evidence that businesses are getting more aggressive in laying people off, Jefferies said in a note to clients.

"The uncertainty caused by trade policy, the ongoing negotiations over the Federal budget, and unknown specifics in the administration's deregulation effort are driving business and consumer sentiment lower," Jefferies Chief US Economist Thomas Simons wrote. "However, they do not appear to be causing a broad halt in business decisions, especially hiring."

After announcing sweeping new import tariffs early last month, US President Donald Trump declared a 90-day pause on certain duties for non-retaliating countries. Recently, the US and China agreed to suspend most levies on each other's goods for a period of 90 days, while Washington reached a trade deal with the UK.