Wikinvest Wire

Jobless claims hit 7-year high

Thursday, November 13, 2008

The Labor Department reported that new claims for unemployment insurance rose to a level last seen during the week of September 29, 2001, just after the terrorist attacks.
IMAGEJobless claims rose by 32,000, to a seasonally adjusted 516,000, falling just short of the 517,000 mark set in 2001 which was the highest total since July of 1992 when 564,000 claims were filed.

The four-week moving average increased to 491,000, the highest level in over 17 years, putting today's weakening job market on par with the early 1990s recession.

Interestingly, back in the recession of the early 1980s, jobless claims were much higher than 1992, 2001, or last week, routinely exceeding the 600,000 level in 1982 when the U.S. population was significantly smaller (~230 million versus ~305 million today).

A "back of the envelope" calculation indicates that if we reach 1982 level job losses in the period ahead, we'll see weekly jobless claims peak at somewhere around 900,000.

Yikes!

Continuing claims also increased, a clear sign of how difficult it has become for displaced workers to find new employment. In this case, early 1980 levels have already been reached, the most recent figure of 3.9 million being the highest total since January of 1983.

3 comments:

AJ said...

Oh my, there are so many unemployed people? What ever shall we do?

...how about some Keynesian deficit spending on infrastructure? Puts people to work, money in hands, and improves life in local areas.

Mary said...

Mary -

When you consider the unemployment market during this economic mess think about the college students and young professionals that are up a creek without a paddle. 150k plus for their education and do these kids know what they will be doing in May 2009? They need to be networking 24/7. - CareerTreking

Anonymous said...

Bailout 2008, a poem by David Jeffrey

Like a bloodied warrior,
laying broken and torn.

Like a dying soldier, hopeless and forlorn.

But the blood, it be green,
the color of money.

And the soldier is an economy,
and it is anything but funny.

Broken are it's people and shattered are their dreams.

Thanks to the ultra rich and their full proof schemes.

It is a tragedy with more pain to come.

Finance will be Hell, and their wills will be done.

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