Jobless Claims Increase to 516,000

By Christopher S. Rugaber  |   2008-11-14  |     NEWSPAPER EDITION

THE number of newly laid-off individuals seeking unemployment benefits has jumped to a seven-year high, the United States government said yesterday.

The Labor Department said jobless claims last week increased by 32,000 to a seasonally adjusted 516,000. That is the highest total since just after the September 11 terrorist attacks.

The total was much higher than analysts expected. Wall Street economists surveyed by Thomson Reuters expected claims to increase only slightly to 484,000.

The four-week average of claims, which smooths out fluctuations, rose 13,250 to 491,000, the highest in over 17 years.

Yesterday's figure is the first time claims have topped 500,000 in the current economic slowdown. Jobless claims above 400,000 are considered a sign of recession. A year ago, claims stood at 338,000. The number of individuals continuing to seek unemployment benefits rose to 3.9 million.