WASHINGTON — New jobless claims jumped far more than expected last week in an already dismal labor market, and there’s no relief in sight for workers as mass layoffs persist.
The Labor Department reported Thursday that the number of newly jobless workers seeking benefits rose last week to a seasonally adjusted 626,000, from the previous week’s upwardly revised figure of 591,000. The latest total is far more than analysts’ expectations of 583,000.
That is also the highest since October 1982, when the economy was in a steep recession, though the workforce has grown by about half since then.
The numbers reflect the layoffs announced last month by companies from all sectors, including Caterpillar, Pfizer and Microsoft.
The layoffs continued Thursday with cosmetics maker Estee Lauder Cos. saying its fiscal second- quarter profit fell 30 percent and it plans to begin a four-year restructuring plan that will include cutting 2,000 staffers, or 6 percent of the workforce.
Economists expect the government to issue a grim report today that will show the unemployment rate rose to 7.5 percent in January, up from 7.2 percent in December. That would be the highest rate in 17 years.
The housing slump and financial crisis have hammered spending by businesses and consumers, sending the economy into a recession that is expected to continue at least until the second half of this year.
People who remained on the unemployment-compensation rolls increased slightly to nearly 4.8 million, the Labor Department said, the most since records began in 1967.
