Initial jobless claims rose by 23,000 to 352,000 for the week ending Nov. 24 -- the highest level since February 2007, the U.S. Labor Department announced Thursday. The statistic was substantially higher than the 332,000 consensus estimate.

Meanwhile, the more telling 4-week moving average rose slightly -- by 5,750 claims to 335,250, its highest level since March 2007. Economists view the 4-week average as a better indicator of unemployment, as it smooths out strikes, holidays, or other idiosyncratic events.

The number of continuing claims rose by 112,000 to 2.67 million for the week ended Nov. 17, the latest period for which figures were available. Economists and analysts had expected a continuing claim stat of roughly 2.55 to 2.61 million.

Economic Analysis: The 4-week moving average -- the average economists and analysts focus on -- continues to move higher, which is not a good sign for the U.S. economy. Although not above the more problematic 350,000 level, the rising 4-week moving average suggests that the job market continues to soften, something the U.S. Federal Reserve will keep an eye on, given the historically strong correlation between employment growth and economic growth.