U.S. Jobless Claims Fell Last Week, Skewed by Holiday

[TomClash]

Source: Bloomberg

Dec. 31 (Bloomberg) -- The number of Americans filing first-time claims for unemployment benefits tumbled last week, skewed by the shortened Christmas workweek, while total jobless rolls reached a 26-year high, signaling a worsening labor market as the economy heads into the second year of a recession.

Initial jobless claims dropped by 94,000 to 492,000 in the week that ended Dec. 27, the lowest level in almost two months, the Labor Department said today in Washington. The number of people collecting benefits jumped in the prior week to the highest level since 1982.

The government often has trouble adjusting the weekly figures for seasonal variations during holidays, a Labor spokesman said. Companies from automakers to banks are stepping up the pace of firings after the worst credit crisis in seven decades caused the economic slump to intensify.

“The underlying picture is terrible for the labor market,” said Joshua Shapiro, chief U.S. economist at Maria Fiorini Ramirez Inc. in New York. The initial claims figures were “distorted by some sort of breakdown in the seasonal adjustment process, with the holidays.”



Read more: http://www.bloomberg.com/apps/news?pid=20601068&sid=a0V6Pu1k3XBs&refer=home

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Unemployment at 26 year high

[napi21]

1. Unfortunately, I'm afraid you'll see those figures skyrocket in

early January and onward after that. Most retailers didn't hire as many people for this holiday season as they usually do, but whatever extras they did hire will be gone next week. I've been hearing about a lot of retailers going out of business or closing some stores after the first of the year, but last night's local news even SHOCKED ME! They said the national federation of retailers predicts that over 200,000 retail stores will CLOSE during 2009!!! I realize that's a national figure, but 200,000 is a HUGH #!

[4dsc]

2. and how many millions of employees??

Not only will these stores close but millions of employees will also lose their jobs.

[TomClash]

3. Also, the severance starts running out

and then savings . . . and that makes the situation worse.

You're right - a lot of retailers will be shutting stores in January and February.

[Blue Gardener]

4. Plus the car assembly plants are down in January

So all the people at the assembly plants, plus the suppliers will be filing for unemployment. I don't go back to work until Jan. 20, so I will collecting for two weeks.