New jobless claims in the United States jumped far more than expected last week to 626,000, according to a Labor Department report released Thursday. The report showed that the number of laid-off workers seeking jobless benefits rose to the 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. The total is also the highest since October 1982, when the economy was in a steep recession, though the work force has grown by about half since then. The number of people that remained on the unemployment compensation rolls increased slightly to nearly 4.8 million, the most since records began in 1967. The number of people receiving unemployment benefits is at the highest level since August 1982. But, that is without the inclusion of the additional 1.7 million people receiving unemployment insurance through an extension of benefits Congress approved last year, which brings the total to about 6.5 million. The extension provides up to 33 additional weeks of benefits, on top of the 26 weeks typically provided by states. The layoffs continued Thursday with cosmetics maker Estee Lauder 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 work force. The company will also continue its hiring freeze.
