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"What the fock did I get myself into?"
Jobless claims surge to a 16-year high
NEW YORK (CNNMoney.com) -- The ranks of Americans getting by on unemployment insurance are rising fast.
As the number of Americans filing for unemployment insurance reaches a 16-year high, President Bush on Thursday announced he would extend unemployment benefits by signing the stand-alone jobless benefits bill pending in Congress.
The U.S. Department of Labor reported that initial filings for state jobless benefits increased by 27,000 to 542,000 for the week ended Nov. 15. This marks the third time since 1992 that initial claims have exceeded 500,000.
Claims are at the highest total since the week ended July 25, 1992, when 564,000 initial claims were filed.
In a statement, White House press secretary Dana Perino said Bush would would sign legislation pending in Congress to extend unemployment benefits "because of the tight job market."
In September, Bush had threatened to veto a broader stimulus bill that included the extension of jobless benefits.
Bob Brusca, an economist at FAO Economics, said that the week's sharp uptick in claims and the fact that claims have held above 500,000 indicate the figures are in worse shape than those of the two most recent recessions of 1991 and 2001.
"The level itself is very disturbing," he said. "I would guess that the job market will get worse," Brusca said.
Economists surveyed by Briefing.com expected 503,000 claims. Last year, the figure stood at 333,000.
The number of people continuing to collect benefits for one week or more neared a 26-year high. The number surged by 109,000 to 4,012,000 for the week ended Nov. 8, the most recent data available. The last time the figure was this high was for the week of Dec. 12, 1982, when it reached 4,381,000.
The four-week moving average of unemployment claims, used to smooth fluctuations in the data, increased by 15,750 to 506,500 from 490,750 the week prior. During the past two recessions the four-week moving average has held above 400,000. This is the 18th week the four-week moving average has exceeded that benchmark.
Layoffs
U.S. job losses have been mounting for months. Earlier this month, the Labor Department reported the economy lost 240,000 jobs in October, bringing the total number of jobs shed in 2008 to nearly 1.2 million. The unemployment rate rose to 6.5%, a 14-year high, last month.
Companies reporting layoffs in past week include Citigroup (C, Fortune 500), which slashed 20% of its workforce, or 50,000 jobs, the biggest cut by a corporation in 15 years. Financial services firm Fidelity Investments announced that it will cut 1,700 jobs, and Sun Microsystems (JAVA, Fortune 500) reported that it would lay off 6,000 people, or 18% of its work force
Jobless claims surge to a 16-year high
NEW YORK (CNNMoney.com) -- The ranks of Americans getting by on unemployment insurance are rising fast.
As the number of Americans filing for unemployment insurance reaches a 16-year high, President Bush on Thursday announced he would extend unemployment benefits by signing the stand-alone jobless benefits bill pending in Congress.
The U.S. Department of Labor reported that initial filings for state jobless benefits increased by 27,000 to 542,000 for the week ended Nov. 15. This marks the third time since 1992 that initial claims have exceeded 500,000.
Claims are at the highest total since the week ended July 25, 1992, when 564,000 initial claims were filed.
In a statement, White House press secretary Dana Perino said Bush would would sign legislation pending in Congress to extend unemployment benefits "because of the tight job market."
In September, Bush had threatened to veto a broader stimulus bill that included the extension of jobless benefits.
Bob Brusca, an economist at FAO Economics, said that the week's sharp uptick in claims and the fact that claims have held above 500,000 indicate the figures are in worse shape than those of the two most recent recessions of 1991 and 2001.
"The level itself is very disturbing," he said. "I would guess that the job market will get worse," Brusca said.
Economists surveyed by Briefing.com expected 503,000 claims. Last year, the figure stood at 333,000.
The number of people continuing to collect benefits for one week or more neared a 26-year high. The number surged by 109,000 to 4,012,000 for the week ended Nov. 8, the most recent data available. The last time the figure was this high was for the week of Dec. 12, 1982, when it reached 4,381,000.
The four-week moving average of unemployment claims, used to smooth fluctuations in the data, increased by 15,750 to 506,500 from 490,750 the week prior. During the past two recessions the four-week moving average has held above 400,000. This is the 18th week the four-week moving average has exceeded that benchmark.
Layoffs
U.S. job losses have been mounting for months. Earlier this month, the Labor Department reported the economy lost 240,000 jobs in October, bringing the total number of jobs shed in 2008 to nearly 1.2 million. The unemployment rate rose to 6.5%, a 14-year high, last month.
Companies reporting layoffs in past week include Citigroup (C, Fortune 500), which slashed 20% of its workforce, or 50,000 jobs, the biggest cut by a corporation in 15 years. Financial services firm Fidelity Investments announced that it will cut 1,700 jobs, and Sun Microsystems (JAVA, Fortune 500) reported that it would lay off 6,000 people, or 18% of its work force
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