The Idaho Department of Labor says the decline is mostly due to 1,100 workers leaving the state's labor force. Over 7,000 people have left the labor force since May.
The Labor Department says the state's unemployment rate has dropped nearly 2 percentage points since its post-recession high of 8.9 percent in July 2011.
Just over 14,500 unemployed workers received $14.2 million in state and federal unemployment benefits in October, down from 23,300 workers and $22.6 million in benefits in October 2011. Federal extended unemployment benefits expire at the end of the year.
The national unemployment rate in October was 7.9 percent.