The Labor Department (news - web sites) reported Thursday that new filings for unemployment insurance declined by a seasonally adjusted 25,000 to 329,000 for the week ending Oct. 16. That marked the lowest level since early September. In the prior week, claims had climbed by 16,000.

The latest snapshot of the layoffs climate was better than economists were expecting. They were forecasting claims to total in the 345,000 range.

The more stable, four-week moving average of claims, which smooths out week-to-week fluctuations, decreased by 5,500 last week to 348,250, the best showing since late September.