Claims for US unemployment insurance unexpectedly dropped last week and single-family housing starts stabilized in March, providing more evidence the economic slump is easing.

Initial jobless claims decreased by 53,000 to 610,000 in the week ended April 11, the fewest since January, the Labor Department said yesterday. Builders broke ground on 358,000 single-family homes at an annual rate, unchanged from the prior month.

The economy is likely to keep shrinking through mid-year, and unemployment may rise further into 2010, analysts said.