WASHINGTON, Oct 23 - The total number of American applying for initial jobless claims fell slightly last week, the government said on Thursday, suggesting the labor market was inching slowly toward health. First-time claims for state unemployment insurance benefits dropped 4,000 to 386,000 in the week ended Oct. 18 from a revised 390,000 the previous week, the Labor Department said. The figures were in line with Wall Street expectations for 385,000 new claims. The department originally reported new claims in the Oct. 11 week at 384,000. The general trend has been going down as claims have fallen 15,000 since mid-September. The level of new claims has fluctuated in a narrow range near the key 400,000 mark since mid-July. Most economists consider new claims below the 400,000 threshold as a sign of a recovery. This is the third consecutive week the figure has been below that level.
The closely watched four-week moving average was unchanged in the Oct. 18 week at 392,250. Economists view the four-week moving average as a more reliable indicator for jobless trends than the more volatile weekly figures. In a sign the pace of layoffs has eased, the number of people who have already claimed a week of benefits fell to its lowest in six months. So-called continued claims fell to 3.54 million, the lowest since a matching level in the week ended April 5//