US jobless claims fall to 5-week low

Initial jobless claims totaled 397,000 in the week ending October 29, down from a revised 406,000 claims the previous week, the Labor Department reported.

The claims number was lower than the average analyst estimate of 401,000, and provided a positive reading on the depressed job market ahead of Friday's October jobs data.

It was the third time in six months that weekly initial jobless claims have fallen below 400,000.

Last week's reading was the lowest since September 24, when claims stood at 395,000.

The four-week moving average, which helps to smooth out week-to-week volatility, also showed an improving trend.

The average fell by 2,000 to 404,500 claims.

Most analysts are forecasting the Labor Department will report Friday that jobless rate remained at a painfully high 9.1 percent for the fourth straight month in October.

The monthly report also is expected to show the economy created a total of just 85,000 net nonfarm jobs, down from 103,000 in September.

Copyright AFP (Agence France-Presse), 2011