Jobless Claims Surge to 26-Year High

Washington, DC,  Dec. 11, 2008--Initial jobless claims surged to the highest in 26 years last week, Labor Department data showed on Thursday, 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 Dec. 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.

The number of workers applying for state unemployment benefits had briefly fallen back in the prior two weeks, but have now surged as companies respond with aggressive job cuts to the worst financial crisis since the Great Depression.

Thursday's data showed the four-week moving average of new jobless claims rose to 540,500 from 526,250 the prior week, the highest since Dec. 18, 1982 when a reading of 554,500 was recorded.

Continuing claims jumped to 4.43 million in the week ended Nov. 29, also a 26-year high, from 4.09 million the previous week.