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(LINK TO ARTICLE) By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer

WASHINGTON – The number of newly laid-off workers seeking unemployment benefits fell last week to the lowest level since early July, evidence that job cuts are slowing.

The Labor Department said Thursday that initial claims for unemployment insurance dropped to a seasonally adjusted 545,000 from an upwardly revised 557,000 the previous week. Wall Street economists expected claims to rise by 5,000, according to Thomson Reuters.

The decline was the third in the past four weeks. The four-week average, which smooths out fluctuations, dropped 8,750 to 563,000. Despite the improvement, that’s far above the 325,000 per week that is typical in a healthy economy.

Commentary:

Continuing drop in initial jobless claims is further positive sign that the economy has bottomed out and is poised for recovery, barring any unforeseen shocks.