WASHINGTON, Sept 16 (Reuters) - U.S. claims for unemployment benefits unexpectedly fell last week, dropping to a two-month low, according a government report on Thursday that hinted at some stability in the labor market.
Initial claims for state unemployment benefits slipped 3,000 to a seasonally adjusted 450,000, the lowest since the week ended July 10, the Labor Department said.
Analysts polled by Reuters had forecast claims rising to 460,000 from the previously reported 451,000 the prior week, which was slightly revised up to 453,000 in Thursday's report.
A Labor Department official said data for only two states had been estimated for last week's report. The four-week average of new jobless claims, considered a better measure of underlying labor market trends, dropped 13,500 to 464,750.
The second straight week of declines pulled claims for unemployment benefits further away from a nine-month high of 504,000 touched in mid-August and claims are now in the upper end of a 400,000-450,000 range that analysts say is associated with sustainable job growth.
The impaired labor market, characterized by a 9.6 percent unemployment rate, is hobbling the economy's recovery from its most painful recession since the 1930s.
The Federal Reserve is closely watching the jobs market, but is not expected to announce any news steps to ease monetary policy at a regular meeting next Tuesday. Many analysts, however, believe it will resume purchases of government debt by year- end to keep interest rates low and shore up the economy.
The number of people still receiving benefits after an initial week of aid fell 84,000 to 4.49 million in the week ended Sept. 4 from an upwardly revised 4.57 million the prior week.
Analysts polled by Reuters had forecast so-called continuing claims falling to 4.46 million from a previously reported 4.48 million.
The insured unemployment rate, which measures the percentage of the insured labor force that is jobless, dipped to 3.5 percent during that period from 3.6 percent the prior week.
The number of people on emergency benefits fell 402,116 to 4.11 million in the week ended Aug. 28. (Reporting by Lucia Mutikani; Editing by Andrea Ricci)