Initial jobless claims decreased 18,000 to 365,000 for the week ended May 3, below the consensus estimate, the U.S. Labor Department announced Thursday. Claims for the previous week were revised up 3,000 to 383,000.

Economists surveyed by Bloomberg News had expected this week's initial jobless claims to total 370,000.

Also, the 4-week moving average increased 2,500 to 367,000. Economists view the 4-week average as a better indicator of unemployment conditions, as it smooths-out anomalies for strikes, holidays, or other idiosyncratic events.

Economist Peter Dawson said this week's job report "shows that soft labor conditions are an enduring feature of the sluggish U.S. economy. Hiring in both small and large companies has to turn up before we can say this economy is gaining some traction."

The largest increases in initial claims for the week ending April 26 were in: Massachusetts, +5,591, New York, +4,648, Kentucky, +3,776, New Jersey, +3,521, and Michigan, +3,238. The largest decreases were in: Texas, -3,373, Rhode Island, -1,835, California, -1,689, Pennsylvania, -1,597, and, Connecticut, -1,423.

Meanwhile, the number of continuing claims decreased by 10,000 to 3.020 million from a revised 3.030 million for the week ended April 26, the latest period for which figures were available.

Economic Analysis: Another poor weekly jobless report. Weekly claims were above the consensus estimate, and the 4-week moving average remains at an elevated level. Further, the continuing claims total remains over 3 million -- an indication of a soft job market. That statistic, combined with a elevated 4-week average, indicates that labor market conditions are not improving -- a decided negative for the U.S. economy.