Expectations exceed 589K
The number of new claims for the jobless climbed more than expected within the last week. Companies are continuing to cut jobs at a fast rate. In the week ending January 17th jobless claims rose from 527, 00 to 589,000 and still rising, Wall Street expects the numbers to rise to 540,000. That total will reach a 26 year high. Although the work force as grown the last time jobless claims were this high was when the economy was rising from a recession in November 1982. The increase is said to be from a backlog of claims that have been piling up of the holidays as well as computer crashes due to the enormous amount of applications. Many laid off workers are having trouble finding new jobs as well which makes the claims increase. One year ago jobless claims where only 324,000. While more and more companies announce layoffs consumers continue to slash their spending. Some economists say this should continue into fall 2009 or even as late as 2010.