Thursday, November 13, 2008

US Unemployment on a New HIGH

The News:

Jobless claims jump unexpectedly to 7-year high

Jobless claims jump to 7-year high, signaling rapid deterioration in the labor market

WASHINGTON (AP) -- The number of newly laid-off individuals seeking unemployment benefits has jumped to a level not seen since just after the Sept. 11, 2001, terrorist attacks.

The Labor Department on Thursday reported that jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That nearly matched the 517,000 claims reported seven years ago, and is the second-highest total since 1992.

The total also was much higher than analysts expected. Wall Street economists surveyed by Thomson Reuters expected claims to increase only slightly to 484,000. Initial claims from two weeks ago were revised upward Thursday by 3,000 to 484,000.

The increase puts jobless claims at levels similar to the recession of the early 1990s. The four-week average of claims, which smooths out fluctuations, increased to 491,000, the highest in more than 17 years.

My Views:

Unexpectedly? why? Everybody who is in his / her senses expected this and even worse when it is revised later. In times of increasing worries, things turn out uglier than most "analysts" think. Nothing surprising in it.

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