Jobless benefits requests surge at unexpected rate
WASHINGTON — New claims for jobless benefits rose more than expected last week, exceeding even gloomy expectations for an economy stuck in a recession that seems to be deepening.
The Labor Department reported this morning that initial applications for jobless benefits in the week ending Dec. 6 rose to a seasonally adjusted 573,000 from an upwardly revised figure of 515,000 in the previous week. That was far more than the 525,000 claims Wall Street economists expected.
In a fresh example of the layoffs, tool maker Stanley Works said this morning it plans to cut 2,000 jobs, or about 10 percent of its work force, and close three manufacturing facilities. The New Britain, Conn.-based company cited weakness in its construction and industrial segments and the effect of a stronger dollar for the reductions.
New jobless claims last week reached their highest level since November 1982, though the labor force has grown by about half since then.
The jump is partly due to a rebound in claims from the previous week, which included the Thanksgiving holiday, a Labor Department analyst said. Government offices were open for fewer days that week.
Still, the four-week average, which smooths out fluctuations, was a seasonally-adjusted 540,500, the highest since December 1982, when the economy was emerging from a steep recession.
By The Associated Press
