The REAL Unemployment story is highlighted. +30K on continuing and +152K on Emergency

New U.S. claims for unemployment benefits fell more than expected last week, government data showed on Thursday, pointing to some improvement in the labor market.

Initial claims for state unemployment benefits fell 23,000 to a seasonally adjusted 452,000, the Labor Department said.

Despite the drop, which also saw the unwinding of the prior week's administrative related-jump, claims remain perched above levels usually associated with a strong job market recovery, making it all but certain the Federal Reserve will ease monetary policy further next month.

Analysts polled by Reuters had forecast claims falling to 455,000 from the previously reported 462,000. The government revised the prior week's figure up to 475,000.

Last week's claims data covered the survey period for the government's October non-farm payrolls report. A Labor Department official said only the Virgin Islands' claims had been estimated in the most recent week and noted the prior week's claims number had been pushed up by administrative factors.

The Federal Reserve is widely expected to announce a second round of asset purchases, also know as quantitative easing, at its Nov. 2-3 meeting to keep interest rates low in an effort to combat high unemployment and boost demand.

The labor market has stumbled as the economy's recovery from the most painful recession 70 years fizzled, leaving the jobless rate at an uncomfortably high 9.6 percent.

Last week, the four-week average of new jobless claims, considered a better measure of underlying labor market trends, fell 4,250 to 458,000.

Claims for jobless benefits have moved sideways for much of this year and continue to hold below a nine-month high touched in mid-August.

The number of people still receiving benefits after an initial week of aid dropped 9,000 to 4.44 million in the week ended Oct. 9, the lowest level since the week ending June 26, from an upwardly revised 4.45 million the prior week.

Analysts polled had forecast so-called continuing claims edging up to 4.41 million from a previously reported 4.40 million. MISSED BY 30,000

The number of people on emergency benefits increased 152,112 to 4.04 million in the week ended Oct. 2.INCREASED BY 152,000+