June 11 (Bloomberg) -- Fewer Americans filed claims for unemployment benefits last week, indicating the deepest job cuts may be subsiding even as companies hold off on hiring. Initial jobless claims fell by 24,000 to 601,000 in the week ended June 6, fewer than forecast and the lowest level since January, from a revised 625,000 the prior week, Labor Department figures showed today in Washington. The number of people collecting benefits rose for a 19th straight time to a record 6.82 million in the prior week. Businesses are slowing staff reductions as signs emerge that the worst recession in at least five decades may end in the second half of 2009. Still, economists in a Bloomberg News survey predicted the unemployment rate will climb to 10 percent by year-end and restrain consumer spending, muting any recovery. “The labor market is still deteriorating and the economy remains in recession, although both are becoming less severe,” Steven Wood, president of Insight Economics LLC in Danville, California, said before the report. Jobless claims were estimated to fall to 615,000 from 621,000 initially reported for the prior week, according to the median projection of 46 economists in a Bloomberg News survey. Estimates ranged from 580,000 to 640,000. A Commerce Department report today showed sales at U.S. retailers rose in May for the first time in three months as shoppers returned to automobile showrooms seeking bargains from the ailing carmakers. Purchases climbed 0.5 percent, as forecast, after a revised 0.2 percent drop in April that was smaller than first reported, the Commerce Department said. Four-Week Average The four-week moving average of initial claims, a less volatile measure, fell to 621,750 from 632,250. The unemployment rate among people eligible for benefits, which tends to track the jobless rate, held at 5.1 percent, the highest since 1982, in the week ended May 30. Fourteen states and territories reported an increase in new claims for the week ended May 30, while 39 reported a decrease. These data are reported with a one-week lag. Initial jobless claims reflect weekly firings and tend to rise as job growth -- measured by the monthly non-farm payrolls report -- slows. A Labor Department report last week showed employers cut 345,000 workers from payrolls in May, the fewest in eight months and less than forecast, adding to signs the economic slump is abating. Still, the unemployment rate jumped to 9.4 percent, the highest level since 1983. 6 Million The economy has lost 6 million jobs since the recession began in December 2007, the most of any downturn in the post- World War II era. More losses may follow as automakers restructure. On top of General Motors and Chrysler, parts manufacturers Visteon Corp. and Metaldyne Corp. have filed for bankruptcy. The jobless rate will rise to 9.8 percent in 2010, according to the Bloomberg survey of economists taken from June 1 to June 8. Consumer spending, which accounts for 70 percent of the economy, will likely drop 0.7 percent in 2009, the worst performance since 1974. United Parcel Service Inc., stung by tumbling demand for air package shipments, this week said its pilots union agreed to $131 million in concessions during the next three years to avoid layoffs of as many as 300 of the group’s members. The Independent Pilots Association agreed to short- and long-term leaves of absence, job sharing, reductions in flight pay guarantees and early retirement to lower costs. “A lot of pilots are telling me they’re doing this because it stops a furlough,” said Bob Miller, president of the union and a UPS captain. President Barack Obama last week announced 10 infrastructure projects, including improvements in parks, highways and veteran medical facilities, in a bid to save or create more than 600,000 jobs over three months.

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