By Denny Gulino and Brai Esene

WASHINGTON (MNI) - Initial claims for U.S. state unemployment benefits fell 6,000 to 462,000 in March 6 week after seasonal adjustment, according to data released by the U.S. Labor Department Thursday morning.

The level was just slightly above the 460,000 level expected in a Market News International survey of economists.

A Labor analyst said the week was "uneventful" with no states estimated and the seasonal adjustment factor close, expecting a 1% decline and instead getting a 2.3% decline of about 11,000.

As a level, unadjusted claims declined 10,969 to 460,387, still well below the unadjusted level of 652,636 a year ago.

The initial claims seasonally adjusted 4-week average rose 5,000 to 475,500.

Wednesday, the Senate approved a bill which included extending jobless benefits for the rest of the year for those out of work six months or longer. The House must still vote on the measure. The result is not expected to substantially boost the total for Emergency Unemployment Compensation, now at 5,527,925 in the latest week, down 159,649. Extended benefits, the second tier of the three-tier benefits program, was at 163,291 in the same Feb. 20 week, down 15,181.

In the February 27 week, continuing claims rose 37,000 to 4,558,000, while unadjusted continuing claims fell 268,281 to 5,528,856.

The seasonally adjusted insured unemployment rate stayed at 3.5% for a second week, below the 3.9% a year earlier.

The unemployment rate among the insured labor force is well below that reported monthly by the Labor Department because claims are approved for the most part only for job losers, not the job leavers and labor force reentrants included in the monthly report.

** Market News International Washington Bureau: 202-371-2121 **