It's true - library circulation and attendance go way up during recessions. Not hard to see why. Libraries rock the free books, free movies, free music, and free internet. Also, they have job-search materials, sometimes even lectures. They even offer free tax assistance via volunteers trained by the IRS - Volunteer Income Tax Service (VITA).
Here's an article from the NY Times about the new popularity of libraries: Folks Are Flocking to the Library, a Cozy Place to Look for a Job, by Jim Carlton