Fewer Americans unexpectedly filed claims for jobless benefits last week even as insured unemployment rose to the highest level in 26 years, indicating companies are still reluctant to hire. Initial jobless claims decreased by 53,000 to 610,000 in the week ended April 11, the Labor Department said today in Washington. The number of people collecting benefits jumped to a record 6.02 million a week earlier. Payroll reductions must begin to moderate in coming months to help stabilize consumer spending and support an economic recovery later this year. Still, the job market is projected to remain weak as employers keep payrolls trim until government measures gain traction. ``The hope is that the job losses will begin to subside,'' John Lonski, chief economist at Moody's Capital Markets Group in New York, said before the report. Still, ``we're going to keep losing jobs well into 2010. It'll be quite some time before employers increase staff.'' Initial claims were estimated to rise to 660,000, according to the median projection of 37 economists in a Bloomberg News survey. Estimates ranged from 635,000 to 700,000. Claims for the prior week were revised up to 663,000 from an initially reported 654,000. The largest declines last week came in states that had previously reported increases in firings among auto makers, a Labor Department spokesman said. In addition, the decrease came in a week that normally sees an increase in claims related to factors including school spring recess, augmenting the magnitude of the drop when the figures are adjusted for seasonal patterns, he said. The four-week moving average of initial claims, a less volatile measure, fell to 651,000 from 659,500. Highest Since 1983 The unemployment rate among people eligible for benefits, which tends to track the jobless rate, climbed to 4.5 percent in the week ended April 4, the highest since January 1983. These data are reported with a one-week lag. Thirty-six states and territories reported an increase in new claims for the week ended April 4, while 16 reported a decrease. Initial jobless claims reflect weekly firings and tend to rise as job growth -- measured by the monthly non-farm payrolls report -- slows or falls. The economy has lost about 5.1 million jobs since the recession began in December 2007, making it the biggest employment slump of the post World War II era. Payrolls fell by 663,000 in March and the jobless rate climbed to 8.5 percent, the highest level since 1983. Job Cuts Hallmark Cards Inc., the greeting-card maker, said it plans to cut 550 to 750 jobs, or as much as 8 percent of its U.S. workforce, because the recession will probably reduce sales further at the Kansas City, Missouri-based company. ``Despite all the steps we have taken to date to avoid eliminating additional jobs, the state of the economy and its impact on our business require us to take further action,'' Chief Executive Officer Donald J. Hall Jr. said in an April 14 statement. Still, there are some signs the economic downturn may be easing. The U.S. contraction slowed across several of the economy's biggest regions last month, with some industries ``stabilizing at a low level,'' the Federal Reserve said yesterday in its Beige Book survey. Fed Chairman Ben S. Bernanke this week said there are signs the ``sharp decline'' in the economy is slowing, indicating a potential ``first step'' toward a recovery from the recession.

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