Fewer auto closings reduce US unemployment claims
Source: AP-Excite
By CHRISTOPHER S. RUGABER and TOM KRISHER
WASHINGTON (AP) - The number of people seeking U.S. unemployment benefits plunged last week. But a big reason is that automakers have skipped some of their usual summer shutdowns to keep up with demand, causing fewer temporary auto layoffs.
Economists expect the number of Americans seeking unemployment aid to go back up in coming weeks.
The auto industry's recovery has helped support the struggling U.S. economy. U.S. auto sales in the first half of the year jumped 15 percent over the same period a year ago. Sales of new vehicles surged in June. Automakers also began Independence Day promotions early, lifting sales at the end of the month.
The Labor Department adjusts the number of applications for unemployment aid to account for seasonal factors. But it didn't anticipate fewer temporary shutdowns of auto plants this summer - and fewer auto layoffs. That distorted the seasonally adjusted data it released Thursday.
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Read more: http://apnews.excite.com/article/20120712/D9VVJB0O1.html
In this Tuesday, July 10, 2012 photo, people walk by the recruiters at a jobs fair in the Pittsburgh suburb of Green Tree, Pa. The number of people seeking unemployment benefits plunged last week to the lowest level in four years, a hopeful sign for the struggling job market. But the decline was partly due to temporary factors. (AP Photo/Keith Srakocic)
