Initial filings rise by 58,000 to 573,000 last week
WASHINGTON (MarketWatch) -- The U.S. labor market weakened further last week, with the number of first-time filings for state unemployment benefits jumping by 58,000 to a 26-year high of 573,000, the Labor Department reported Thursday.
The number of people collecting unemployment benefits rose by 338,000 to 4.43 million, also the highest since late 1982. The 338,000 increase in the week ending Nov. 29 was the most since 1974.
The jobless claims report shows businesses are laying off workers at a rapid pace, and finding a replacement job is ever harder for those who've lost their job. Read the full jobless data report.
Compared with the same week a year ago, new jobless claims are up about 59%, while continuing claims are up 58%.
Initial claims represent job destruction, while the level of continuing claims indicates how hard or easy it is for displaced workers to find new jobs.
Several technical factors could have boosted initial claims last week, a Labor Department spokesman said. The week after Thanksgiving is traditionally the one with the biggest increase in first-time claims, and the government's seasonal adjustment factors may be overstating the increase this year.
Part of the increase in filings last week could simply be administrative catch up from Thanksgiving week, when most state unemployment offices were closed for two days.
Technical factors aside, the report shows a marked deterioration in the labor market. The four-week moving average of new claims - which tends to smooth out the impact of any special factors - rose by 14,250 to 540,500, also the highest since late 1982.
The four-week average of continuing claims rose by 131,000 to 4.13 million, the highest since early 1983.
The insured unemployment rate -- the proportion of covered workers who are receiving benefits -- increased by two-tenths of a percentage point to 3.3%, the highest in 16 years.
Next week's report on initial claims will cover the same week in which the monthly survey is conducted. In November, 533,000 nonfarm payroll jobs were lost, the most since 1974. The economy has shed 1.9 million jobs since the recession began in December 2007.
Typically, unemployment benefits run out after 26 weeks for those who are eligible. A federal law extends unemployment benefits for an extra 13 weeks under the separate federal program.
Benefits are generally available for those who lose their full-time job through no fault of their own. Those who exhaust their unemployment benefits are still counted as unemployed if they are actively looking for work.
In other reports, the Labor Department said import prices fell a record 6.7% in November as imported oil prices fell a record 25.8%. See full story on import prices.
The Commerce Department said the trade gap widened to $57.2 billion in October.
