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.

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.

So far this week, scores of companies have announced job cuts.

Source: Gulf News