Business | Economy
US weekly jobless claims jump to 26-year high
The number of US workers filing new claims for jobless benefits surged to its highest in 26 years last week, Labour Department data showed yesterday, as a deepening recession forced employers to cut back hiring.
- Reuters
- Published: 23:41 December 11, 2008
Washington: The number of US workers filing new claims for jobless benefits surged to its highest in 26 years last week, Labour Department data showed yesterday, as a deepening recession forced employers to cut back hiring.
Initial claims for state unemployment insurance benefits jumped by 58,000, the biggest increase since September 2005, to a seasonally adjusted 573,000 in the week ended December 6 from an upwardly revised 515,000 the previous week.
That was the highest print since November 1982, when 612,000 workers submitted new claims for unemployment benefits. Analysts polled by Reuters had forecast 525,000 new claims versus a previously reported figure of 509,000 the week before.
"When combined with the decline in import prices, these are more signs of an economy that is decelerating on the downside with price deflation. That it will create additional concerns about weakening in the economy and corporate profits," said Jim Awad, chairman at W.P. Stewart & Co in New York.
US equity index futures lost more ground, indicating a lower open on Wall Street, while government bond prices briefly rose and the dollar extended losses.
So far this week, scores of companies have announced job cuts.
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