To: JDN who wrote (480333 ) 10/23/2003 11:47:19 AM From: Hope Praytochange Read Replies (2) | Respond to of 769670 Jobless Claims Dip in Latest Week By REUTERS Filed at 9:17 a.m. ET WASHINGTON (Reuters) - The number of Americans making new 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 for the week ended Oct. 18, the Labor Department said. It revised the previous week to 390,000 from 384,000. The figures were in line with Wall Street expectations for 385,000 new claims. ``It shows the labor market is continuing to stabilize,'' said Jay Bryson, a global economist for Wachovia Securities. The general trend has been going down as claims have fallen 15,000 since mid-September. Treasuries pared overnight gains, but the figures did nothing to help stock futures. 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. ``We did have a modest upward revision in the previous week's claims, but we remain under the psychologically important 400,000 level and that's definitely something that we've been looking for,'' said Patrick Fearon, an economist for A.G. Edwards. ``The drop in continuing claims could be a sign that the unemployment rate could start drifting downward,'' Fearon said. 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. The employment market is a key issue for President Bush as he seeks reelection in 2004. The number of people in jobs outside the farm sector has fallen roughly 2.6 million since he took office at the start of 2001. Early signs have emerged that the labor market may be regaining momentum, with September payrolls rising a surprise 57,000 and analysts predicting the economy to generate another small increase in jobs when the department releases its October employment report on Nov. 7. ``With claims lingering in the 380,000 to 400,000 range, (it) suggests to me that you have flat to slightly positive gains in payrolls. Very modest improvement in the labor market, but certainly nothing dramatic,'' said Rick Egelton, deputy chief economist for BMO Financial Group.