WASHINGTON — The number of newly laid-off Americans signing up for unemployment benefits last week, and those using this safety net over a longer period, plunged. But the government figures released Thursday were clouded by difficulties adjusting for temporary shutdowns at auto plants.
Even if the recession ends this year, as the Federal Reserve and many private economists expect, companies are expected to keep trimming payrolls. The unemployment rate will climb because companies won’t hire until they feel certain a recovery is firmly rooted.
The Labor Department said new applications for unemployment insurance dropped by a seasonally adjusted 47,000 to 522,000, the lowest level since early January. A department analyst said the drop didn’t point to economic improvements but reflected problems adjusting layoffs for temporary shutdowns at auto plants.
