WASHINGTON — The number of Americans applying for unemployment benefits dropped by 35,000 last week, a figure that may have been distorted by seasonal factors.
The Labor Department said Thursday that applications fell to a seasonally adjusted 353,000. That’s down from a revised 388,000 the previous week and the biggest drop since February 2011.
The four-week average, a less volatile measure, declined 8,750 to 367,250. That’s the lowest level since the end of March.
Applications surged two weeks ago, reversing a big drop the previous week. But economists caution that the government struggles every July to account for temporary summer shutdowns in the auto industry. The adjustments have been unusually difficult this year because some automakers skipped their shutdowns in the face of stronger sales, resulting in fewer temporary layoffs.
Unemployment benefit applications are a measure of the pace of layoffs. When applications consistently fall below 375,000, it typically suggests hiring is strong enough to pull the unemployment rate down.