The number of newly laid off workers seeking unemployment benefits dropped much more than expected last week. The Labor Department reported Thursday that applications for unemployment benefits fell to 365,000, a decline of 18,000 from the previous week. Economists had been looking for a much smaller decrease of around 5,000. Weekly 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. Many economists believe that a prolonged housing slump and severe credit crisis have pushed the economy into a recession.
See "Jobless claims post sharp decline", Martin Crutsinger, San Francisco Chronicle, May 7, 2008