Jobless Claims Soared Before Christmas
The number of existing unemployment claims is the highest it has been in over two years.In a surge not foreseen by economists, new applications for unemployment benefits rose by 1,000 in the week ending Dec. 22 and the number of long-term unemployed workers jumped to its highest level in more than two years, the Labor Department reported Dec. 27. Largely driven by a slowdown in the housing sector as construction companies and mortgage lenders laid off workers, initial unemployment claims grew to 349,000 in the week before Christmas.
As a result of this, other companies are getting nervous to hire and finding a job is getting more difficult, as seen in the number of people continuing to collect unemployment benefits, which jumped by 75,000 to 2.71 million in the week that ended Dec. 15. This is the biggest jump since November 2005.