Continuing claims highest since 1983 WASHINGTON (MarketWatch) -- First-time filings for state unemployment benefits hit their highest level since September 2001 in the latest week, rising to 516,000 in another sign of a struggling U.S. labor market, the Labor Department reported Thursday. For the week ending Nov. 8, initial claims climbed by 32,000 from last week's revised figure of 484,000. The four-week average of new claims -- which measures the underlying trend -- also hit a historic high, shooting up to 491,000. That's the highest since March 1991. There was more gloomy news in continuing claims, which rose by 65,000 to 3.89 million in the week ending Nov. 1. The level of continuing claims indicates how difficult it is for displaced workers to find new jobs. Initial claims represent job destruction. The four-week average of continuing claims was 3.79 million. Both the continuing claims figure and the four-week continuing claims figure were the highest since 1983. Unemployment benefits typically run out after 26 weeks for those who are eligible. A new law extends jobless benefits for an additional 13 weeks under a separate federal program. Thursday's claims data is the latest gloomy indicator for the labor market. In October, the unemployment rate was 6.5%, its highest point in more than 14 years. Some economists are expecting the picture to worsen. On Wednesday, economists at Wachovia said they expect the unemployment rate to peak in late 2010 at 9%, which would be the highest since 1983. The Wachovia economists said the U.S. recession is likely to be as long and severe as the downturns in 1973-75 and 1981-82.

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