Washington, D.C., United States (AHN) – Initial claims for jobless benefits dropped slightly while continuing unemployment compensation claims dipped below 4.4 million, the United States Labor Department announced Thursday.

New claims for unemployment compensation fell by 21,000 to 434,000 for the week ending Oct. 23 down from 455,000 the week before. It was the lowest number of new claims since July.

The unemployment rate among workers eligible to receive unemployment benefits held steady at 3.5 percent. The overall unemployment rate for all workers is 9.7 percent.

Economists had expected 458,000 new jobless claims. Although the lower numbers were encouraging, economists warned that other labor-market readings indicate the economy has not yet turned the corner.

In the meantime, the news gave stocks a brief boost when the markets opened on Thursday. However, the rally soon fizzled as stock prices edged downward on mixed corporate earnings reports.

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