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Jobless Data Worse Than Expected

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By MARTIN CRUTSINGER

The Associated Press

Published: February 20, 2009

WASHINGTON - The number of laid-off workers receiving unemployment benefits has jumped to an all-time high near 5 million while new jobless claims remain well above 600,000. Both figures were worse than expected and new projections from the Federal Reserve show unemployment rising for the rest of this year.

The Labor Department reported Thursday that the number of people receiving regular unemployment benefits rose 170,000 to 4.99 million for the week ending Feb. 7, marking the fourth straight week those receiving benefits have been at a record level on data going back to 1967.

The continuing claims figure also was significantly above the year-ago level of 2.77 million and underscored the difficulty people are having in this recession finding another job once they are laid off.

An additional 1.5 million people are receiving benefits under an extended unemployment compensation program approved by Congress last year, bringing the total number of people receiving unemployment benefits to 6.54 million for the week ending Feb. 7.

"The labor market is in disarray," said Mark Zandi, chief economist at Moody's Economy.com. It's possible that job losses for all of February could total between 700,000 and 750,000 based on what weekly claims have done so far this month, he added.

Employers slashed a net total of 598,000 jobs in January, the most since 1974.

Meanwhile, the Dow Jones industrial average tumbled to its lowest close in more than six years on Thursday as sharp declines in key financial shares led the market lower.

The blue chips broke through a psychological barrier established in November to close at their lowest level since Oct. 9, 2002, the last bear market low.

The feeble performance marks a setback for many investors who hoped the Nov. 20 finish would mark the low point of the market's extended decline from its October 2007 highs.

The market's inability to rally also signals that investors see no immediate end for the recession, which is already 14 months old and one of the most severe in decades.

The Dow had been threatening to break through November's bottom since Tuesday, when the index tumbled 300 points on worries about the economy and the stability of banks in eastern Europe. Stocks had barely held November's low on Tuesday and Wednesday.

The Dow lost 89.68, or 1.2 percent, to end at 7,465.95. It was the lowest finish since October 2002.

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