NEW YORK (PNN) - October 6, 2011 - New U.S. claims for unemployment benefits rose less than expected last week, according to a government report on Thursday that hinted at an improvement in labor market conditions.

Initial claims for state unemployment benefits climbed 6,000 to a seasonally adjusted 401,000, the Labor Department said, from a revised 395,000 the prior week.

Economists polled by Reuters had forecast claims rising to 410,000 from the previously reported 391,000.

The data falls outside the survey period for the government's closely watched employment report for September, which will be released on Friday.

Nonfarm payrolls likely increased 60,000 last month, according to a Reuters survey, after being flat in August. The anticipated gain in nonfarm employment will mostly reflect the return of 45,000 striking Verizon Communications workers to payrolls.

The official jobless rate is seen steady at 9.1%, though the actual unemployement rate is closer to 23%, as the Second Great Depression continues.