Fewer Americans than forecast filed first-time claims forunemployment insurance payments last week, easing concern that thelabor market was deteriorating.

Applications for jobless benefits decreased by 14,000 in theweek ended June 30 to 374,000, the fewest since mid-May, LaborDepartment figures showed today. Economists forecast 385,000claims, according to the median estimate in a Bloomberg Newssurvey. A Labor Department spokesman said there was nothing unusualin the data.

Fewer firings help pave the way for faster job creation whencompanies grow more confident about the economic outlook. A reporttomorrow may show the world's largest economy added 90,000 jobs inJune, capping a second quarter where employment growth slowed tohalf the pace of the prior three months.

“Claims offer some encouragement on the labor market front,”said Millan Mulraine, a senior U.S. strategist at TD Securities inNew York, who forecast a drop in jobless applications. “I wouldcaution by saying this series is notoriously volatile. We wouldhope this is sustained for the coming months.”

Companies added more workers than forecast in June, a privatepayrolls report also showed today. The 176,000 increase followed arevised 136,000 gain the prior month that was higher than initiallyestimated, according to figures from Roseland, New Jersey-based ADPEmployer Services. The median forecast of economists surveyed byBloomberg called for a 100,000 advance.

Stock-index futures were little changed after the reports. Thecontract on the Standard & Poor's 500 Index was at 1,367.9 at8:35 a.m. in New York, down less than 0.1 percent from the close onJuly 3.

Estimates for first-time claims ranged from 371,000 to 400,000in the Bloomberg News survey of 46 economists. The Labor Departmentrevised the prior week's figure to 388,000 from an initiallyreported 386,000.

While auto-plant shutdowns to retool for the new model yearoften play havoc with the claims data around this time of year,there was no indication that influenced last week's claims, theLabor Department spokesman said as the data was released to thepress.

The Labor Department projected a 3 percent increase in un-adjusted claims last week, or about 11,300. Instead, there was a0.8 percent decrease. The agency projects an almost 30 percent jumpthis week as a result of the shutdowns, the spokesman said.

Four-Week Average

The four-week moving average, a less-volatile measure, fell to385,750 last week from 387,250.

The number of people continuing to collect jobless benefitsclimbed by 4,000 in the week ended June 23 to 3.31 million. Thecontinuing claims figure does not include the number of workersreceiving extended benefits under federal programs.

Those who've used up their traditional benefits and are nowcollecting emergency and extended payments decreased by about29,000 to 2.68 million in the week ended June 16.

The unemployment rate among people eligible for benefits was 2.6percent in the week ended June 23, where its been since mid March,today's report showed. Thirty-three states and territories reporteda decrease in claims, while 20 reported an increase.

Initial jobless claims reflect weekly firings and tend to fallas job growth — measured by the monthly non-farm payrolls report —accelerates.

Tomorrow's Labor Department report will probably show the jobmarket is making little progress after payrolls expanded by 69,000in May, the least in a year. Excluding government agencies, privatehiring may have climbed by 100,000 in June after increasing by82,000 in May, concluding the smallest quarterly advance since thefirst three months of 2010, according to the economists'forecast.

The churn in labor market firing and hiring isn't cutting intothe joblessness either. The unemployment rate probably held at 8.2percent, the economists predicted tomorrow's report will show.Joblessness has exceeded 8 percent since February 2009, the longeststretch in monthly records dating to 1948.

Swiss drugmaker Roche Holding AG said last week it will close aNew Jersey laboratory to consolidate research and development,cutting about 1,000 U.S. jobs. At the same time, Nissan Motor Co.said it will hire at least 1,000 more workers this year at itsCanton, Mississippi, plant.

“After a brighter start to the year, economic momentum hasslowed in the last few months,” Federal Reserve Bank of New YorkPresident William C. Dudley said during a June 29 speech.“Employment growth remains positive but has slowed considerably oflate as the economy has lost forward momentum, and the unemploymentrate remains elevated.”

Bloomberg News

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