Friday, 12 December 2008

US Jobless Claims HIt Fresh 26 Year Highs

US initial jobless claims hit a fresh 26 year high in the latest week. Initial Claims hit 573k, the highest level since November 1982.

Continuing Claims also rose sharply in the latest week to 4.43 million, the highest level since December 1982. It is worth noting that the workforce is larger than it was in 1982, so that should be kept in mind when comparing to prior periods. That said, as claims continue to rise we can expect more nasty employment reports in the months ahead.

From November 1981 through January 1983, the 4 week moving average of intial jobless claims averaged over 500k. So far in this recession intial claims have been over 500k for just one month. Those looking for an abatement in jobless claims as a sign the economy is turning around, will be waiting for some time.