The number of newly unemployed Americans seeking jobless benefits rose more than expected last week, according to figures from the U.S. Labor Department that suggest the labor market is not likely to improve anytime soon. The U.S. Labor Department reported Thursday that first-time requests for unemployment insurance jumped to a seasonally adjusted 524,000 in the week ending January 10, from an upwardly revised figure of 470,000 the previous week. Analysts had expected 500,000 new claims. The increase is partly due to requests from newly-laid off people who delayed filing claims over the holidays, a Labor Department analyst said. The four-week average of claims, which smoothes out fluctuations, fell by 8,000 to 518,500 last week. This week MeadWestvaco, a paper and plastic product manufacturer, announced it would cut some 2,000 employees or about 10 percent of its work force. Google Incorporated also said it would close three engineering offices and cutting 100 recruiters. Computer equipment maker Seagate Technology said it will eliminate 2,950 jobs, or 6 percent of its work force. Separately, the U.S. Labor Department said wholesale prices fell by 1.9 percent in December, closing out a year in which prices dropped by the largest amount in seven years. The decline was led by a huge plunge in energy prices. For the year, wholesale prices fell by 0.9 percent, the first annual decline since prices had fallen by 1.6 percent in 2001, when the country was in a recession. The Thursday data did contain one positive reading: the number of people continuing to request benefits declined to 4.5 million, down from an upwardly revised figure of 4.6 million the previous week.
