WASHINGTON -- The number of U.S. workers applying for unemployment benefits tumbled by a greater-than-expected 53,000 last week, but a closely watched moving average of claims was at its highest in two and a half years, a government report showed on Thursday.

Jobless claims fell to 357,000 in the week ended April 5 from an upwardly revised 410,000 in the previous week, the Labor Department said. Last week's reading is the highest since September, 2005.

Analysts polled by Reuters were expecting 385,000 jobless claims in the most recent week.

However, the four-week moving average of new claims, a more reliable guide to underlying labor market trends because it smooths out weekly data fluctuation, rose to 378,250, the highest since October, 2005.

In further evidence of weak labor market conditions, the number of workers remaining on jobless benefits rose to 2.94 million, the highest since July, 2004, in the week ended March 29. Analysts had estimated continuing claims at 2.93 million.

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