WASHINGTON — The number of new unemployment claims jumped more than expected last week, as companies continue to cut jobs at a furious pace and more Americans turn to an extended benefits program.
The Labor Department reported Thursday that initial jobless-benefit claims rose to a seasonally adjusted 589,000 in the week ended Jan. 17, from an upwardly revised figure of 527,000 the previous week. The latest tally was well above Wall Street economists’ expectations of 540,000 new claims.
The total matches a 26-year high reached four weeks ago. The last time claims were higher was in November 1982, when the economy was emerging from a steep recession, though the workforce has grown by about half since then.
The four-week average of claims, which smooths out fluctuations, was 519,250, the same as the previous week.
But the layoffs continued Thursday. In addition to Microsoft’s 5,000 cuts over the next 18 months, chemical maker Huntsman Corp. will slash 1,175 jobs this year, representing more than 9 percent of its workforce, to reduce costs as demand slows amid the global economic downturn. Salt Lake City-based Huntsman also plans to cut an additional 490 contractors.
