June 19 (Bloomberg) -- The number of Americans filing first-time claims for unemployment benefits fell last week, signaling the softening in the labor market isn't getting worse.

Initial jobless claims fell 5,000 to 381,000 in the week ended June 14, a higher total than forecast, from a revised 386,000 the prior week, the Labor Department said today in Washington. The total number of people collecting benefits dropped 76,000 to 3.06 million for the week ended June 7.

Export orders and demand for machinery are prompting some companies to hold on to workers even as the extended slump in housing, higher fuel prices and credit restrictions argue against increasing staff.

``We're going to continue to see some upside pressure on jobless claims in the upcoming months,'' said Russell Price, a senior economist at H&R Block Financial Advisors Inc. in Detroit. Businesses are ``going to look to cut their labor costs to maintain profit margins as best they can.''

Treasuries extended earlier losses after the report, pushing yields higher. The benchmark 10-year note yielded 4.18 percent, up 5 basis points from yesterday.

Economists had forecast claims would fall to 375,000, from a previously reported 384,000 a week earlier, according to the median of 41 projections in a Bloomberg News survey. Estimates ranged from 370,000 to 395,000.

The four-week moving average for initial claims, a less volatile measure, increased to 375,250 from 372,000.

The unemployment rate among people eligible for benefits, which tends to track the U.S. jobless rate, dropped to 2.3 percent from 2.4 percent. Forty-four states and territories reported an increase in new claims, while nine had a decrease. These data are reported with a one-week lag.

Average Rising

Weekly claims have averaged 359,900 so far this year, compared with an average of 321,000 in 2007, when the economy generated 91,000 new jobs each month on average.

The U.S. lost 49,000 jobs in May and the unemployment rate rose to 5.5 percent, the government said on June 6. It was the fifth straight month that there was a drop in payrolls and the biggest jump in the jobless rate in more than two decades.

Today's report corresponds to the week the Labor Department surveys businesses to calculate the monthly payroll figures. The next jobs report is due July 3.

The Labor Department figures on unemployment claims so far are not matching the losses seen in previous economic downturns. During the last recession, in 2001, about 415,000 workers on average filed jobless claims each week.

Cutting Costs

Higher food and energy prices combined with slower consumer spending have led some companies to trim staff. Rohm & Haas Co., the world's biggest producer of acrylic-paint ingredients, this week said it plans to cut 925 jobs to counter rising oil prices.

Raj Gupta, chief executive of the Philadelphia-based company, said the decision complements ``the pricing surcharge implemented recently to address rising raw-material, energy and freight costs.''

Federal Reserve Chairman Ben S. Bernanke and other policy makers have expressed concern this month about rising prices for oil, prompting traders to bet the central bank will raise its benchmark interest rate before the year is out.

Fed officials next meet June 24-25, when they're expected to vote on interest rates while discussing forecasts for employment, growth and inflation.

To contact the reporter on this story: Timothy R. Homan in Washington at thoman1@bloomberg.net

Last Updated: June 19, 2008 08:52 EDT