Initial jobless claims fell by 15,000 to 338,000 for the week ended Dec. 1, but the more-telling four-week moving average reached its highest level -- up 4,750 to 340,000 -- since October 2005, the U.S. Labor Department announced Thursday.

The 338,000 weekly statistic was slightly higher than the 335,000 consensus estimate.

Economists view the four-week average as a better indicator of unemployment conditions, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.

The number of continuing claims decreased by 59,000 to 2.6 million for the week ended Nov. 24, the latest period for which figures were available.

Economic Analysis: The four-week moving average -- the average economists and analysts concentrate on -- continues to move higher and remains a 'data point of concern' for the U.S. economy. Joblessness is not high, but job growth is not high either. Further, although not above the more-problematic 350,000-level, the rising four-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 sustainable economic growth.