WASHINGTON (AP) — The number of newly laid-off workers seeking unemployment benefits dropped much more than expected last week, the Labor Department reported Thursday.þþIn its weekly report, the department said that applications for unemployment benefits fell to 365,000, a decline of 18,000 from the previous week. Economists expected a decrease of about 5,000.þþWeekly jobless claims have been exceptionally volatile in recent weeks because of strike-related layoffs in the auto industry and an unusually early Easter, which has played havoc with the government’s seasonal adjustment measurements.þþMany economists say they believe that the prolonged housing slump and the severe credit crisis have pushed the economy into a recession. For that reason, they expect layoffs to rise in the coming months as the unemployment rate climbs higher.þþBut they also said the downturn might be relatively mild and brief, leading to less-severe job losses than in previous recessions.þþThe report on jobless claims showed the total number of laid-off workers receiving benefits dipped slightly, to 3.02 million, for the week that ended April 26 but remained above 3 million for the second consecutive week.þþFor the week that ended April 26, drops in initial claims were recorded in 32 states and territories while 21 had increases.þþThe biggest increase was in Massachusetts, a rise of 5,591 that was attributed to layoffs in transportation, services and public administration.þþOther states with big increases were New York, 4,648; Kentucky, 3,776; and New Jersey, 3,521.þþ
Source: NY Times
