Fewer Americans than forecast filed first-time claims forunemployment benefits last week, which may reflect difficultyadjusting the data for seasonal swings at the start of a newquarter.

Applications for jobless benefits dropped 30,000 to 339,000 inthe week ended Oct. 6, the fewest since February 2008, LaborDepartment figures showed today. Economists forecast 370,000claims, according to the median estimate in a Bloomberg survey. Onestate accounted for most of the plunge in claims, a LaborDepartment spokesman said as the data were issued to the press.

Waning dismissals may help clear the way for bigger hiring gainswith any improvement in demand. At the same time, the globaleconomy cooling and a lack of clarity on U.S. fiscal policy arehurdles for faster gains in employment.