The Labor Department said Thursday that weekly applications dropped 9,000 to a seasonally adjusted 397,000, the lowest level in five weeks. It's only the third time since April that applications have fallen below 400,000.
The number of people applying for unemployment benefits declined slightly last week, leaving applications above levels consistent with a healthy economy.
Employers advertised fewer jobs in August than the previous month, a sign some may have pulled back on hiring plans in the face of wild stock market swings and renewed recession fears.
The United States added 103,000 jobs in September, an improvement over this summer and just enough to calm fears of a new recession that have hung over Wall Street and the nation for weeks.