NEW YORK (CNN/Money) - Initial claims for jobless benefits fell by 21,000, slightly more than expected, according to a government report released Thursday.

First-time claims for state unemployment aid fell to 330,000 in the week ended June 4 from an upwardly revised 351,000 the prior week, the Labor Department said. According to the department, this marks the biggest decline in seven weeks.

Analysts surveyed by Briefing.com had forecast a fall to 335,000.

A Labor Department spokesman said the Memorial Day holiday contributed to the drop because it shortened the week, as did a drop in auto industry layoffs.

"Last week, layoffs in the auto industry pushed jobless claims very high, and now they're down. With volatility like this, we urge people to look at the four-week moving average," said spokesman Subri Raman.

First-time claims hit 350,000 in the week ended May 28 on an increase in auto industry layoffs, marking the highest reading since late March.

Last week's four-week moving average, which evens out weekly volatility to provide a clearer view of trends, fell to 331,750, a decrease of 2,750 from the previous week's unrevised average of 334,500, the Labor Department said.

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