New Jobless Claims Make Unexpected Drop

But Overall Unemployment Figures Continue Sharp Rise

(CBS/AP)  New claims for unemployment benefits dropped unexpectedly last week while the number of people continuing to seek aid rose sharply, the government said Thursday.

The Labor Department reported that initial applications for unemployment insurance dropped by 24,000 to a seasonally adjusted 467,000 for the week ending Jan. 3. Wall Street economists expected initial claims to increase to 540,000. The figure partly reflects seasonal volatility that occurs around the New Year's holiday.

The four-week average of initial claims, which smoothes out fluctuations, fell by 27,000 to 525,750.

But the number of people continuing to claim jobless benefits jumped unexpectedly by 101,000 to 4.61 million. That was above analysts' expectations of 4.5 million and the highest level since November 1982.

"The recession is not at its worst point yet - it will probably hit bottom sometime around the middle of 2009. The unemployment rate is going to go up," Prof. Peter Sperling of Touro College told CBS Radio New.

The high level of ongoing claims indicates that laid off workers are having a harder time finding new jobs.

Last week was the second in a row that claims have come in below 500,000, after seven weeks above that level.

Still, the improvement could be temporary. Three states said earlier this week that their online and phone filing systems for unemployment benefits crashed due to the heavy volume of first-time filers. The impact of that volume won't be seen until next week's data.

And companies have resumed mass layoffs after a brief respite over the holidays. This week alone, insurance provider Cigna Corp., aluminum producer Alcoa Inc., data-storage company EMC Corp. and computer products maker Logitech International have announced large job cuts.

"Instead of trying to cut salaries and wages, which can be very demoralizing, very difficult [and] hard to reverse, most companies, when they face these economic problems, tend to lay people off," Sperling told CBS Radio News.

Making matters worse, retailers reported dismal sales figures for December on Thursday as even Wal-Mart Stores Inc., one of the bright spots in the industry, finally buckled under the pressures of the deteriorating economy.

The sales figures confirmed fears that the holiday season was the weakest in four decades as the malaise cut through practically all areas from kitchen gadget stores to jewelry purveyors and teen apparel retailers.

The unemployment data comes as President-elect Barack Obama prepared to deliver a pre-inauguration speech on the economy, hoping to drum up support for his multibillion stimulus plan. Obama said the nation's recession could "linger for years" unless Congress acts, according to the text of the speech to be delivered at George Mason University in Fairfax, Va.

On Wall Street, stocks headed for a lower open Thursday after news of a poor holiday season added to the struggles of the nation's retailers. The market dropped 245 points Wednesday.

[wardoglrs]

No it was not unexpected and yes we are next inline for America to finally by brought down to nothing the very people that not only put us here with voter support but are also by voter support the ones that are going to save us.

%u201CWe are opposed...by a ruthless conspiracy that relies primarily on covert means for expanding its sphere of influence--on infiltration instead of invasion, on subversion instead of elections, on intimidation instead of free choice, on guerrillas by night instead of armies by day. It is a system which has conscripted vast human and material resources into the building of a tightly knit, highly efficient machine that combines military, diplomatic, intelligence, economic, scientific and political operations.

Its preparations are concealed, not published. Its mistakes are buried, not headlined. Its dissenters are silenced, not praised. No expenditure is questioned, no rumor is printed, no secret is revealed. It conducts the [war] with a war-time discipline no democracy would ever hope or wish to match...%u201D John F Kennedy, 1961.

[mainedoggie]

Before (Fatty) - After (Hottie)

Yesterday:
New Jobless Claims Make Unexpected Drop
But Overall Unemployment Figures Continue Sharp Rise


Today:
Dec. Jobless Rate Jumped To 7.2%
Highest Unemployment Rate Since Early 1993, As Employers Slash More Than Half-Million Jobs


Tomorrow:
Jobless Claims Make Unexpected Jump

[ofbyfor3]

Spin it, spin it, spin it! The dumpocrapic congress took office...THE WORLD IS GOING TO BE ALL PERFECT AND ROSEY! The US statistics games begin!

Spin it fast, spin it loud! LMAO!

Posted by TexHillGirl at 09:11 PM : Jan 08, 2009


Why is it with Republicans that when a Democrat is President with a Republican Congress, they blame the President for the failures, but credit the Congress for the successes...

But when a Republican is President with a Democrat Congress, they blame the Congress for the failures, but credit the President for the successes?

Of course when the President AND Congress are Republican, Republicans go completely silent on the Republican failures or try to place the blame entirely on a Democrat from the past.

Seems a TAD hypocritical and self-serving.

[jack19452]

Unemployment numbers haven''t dropped, a lot of people have just run out of unemployment.

[tawpdawg111]

Maybe Bush''s plan to do absolutely nothing about anything is finally paying dividends!

[oleander8]

"New Jobless Claims Make Unexpected Drop"

They didn''t drop - the lines were too long and some folks gave up and will be back tomorrow.

[paidgopshill]

"being penalized because you are too successful"
--------------------------
nI''''ve only heard about penalizing someone for being too successful from you. It''''s paranoia.

Posted by newsjunky5

No, its absolutely true. The "newsjunky" must have missed the story where Rush Limbaugh turned down that $400 million dollar contract and bonus jet because he was absolutely terrified of ending up in a higher tax bracket.

[newsjunky5]

"being penalized because you are too successful"
--------------------------
I''ve only heard about penalizing someone for being too successful from you. It''s paranoia.

[newsjunky5]

Our tax dollars being used for a particular "need", so to speak, is quite a bit different than being penalized because you are too successful and not being allowed to keep your fair share of what you''''''''ve earned..
----------------------------------

The bank executives don''t need it, and certainly didn''t earn it. The money isn''t going into loans to help the economy, it''s going to a few who gave political contributions. There was no desire to save Washington Mutual, which was based in a Blue State.

[ohohoh1]

Exactly Darkstar...Thats what Mr. Huckabee wanted - a fair tax. That way even the illegals have to pay...and even if there is a black market formed, someone paid that tax on the item at one point and time...

[saraplumber]

classic!! it is amazing that libs post on here how stupid conservatives are and they spell so many words wrong in their posts.

Posted by jamesm12341 at 01:58 PM : Jan 08, 2009
--------------
Wow, it''s so great you''re taking time to be the cbsnews proofreader. Is that all you''re doing with your educations?

[newsjunky5]

"New Jobless Claims Make Unexpected Drop
But Overall Unemployment Figures Continue Sharp Rise"
-----------------------------
That means they ran out of forms. Funny, but true. There have been reports of unemployment offices being unable to handle the rush.

[newsjunky5]

Spending my tax dollars on Blackwater, when we''ve already got an army, because the sister of Backwater''s founder gave Bush a huge contribution is a redistribution of wealth. Makes anything Richardson MIGHT have done seem pale by comparison.

[ddaryl1]

I AM A REBUPLICAN BECAUSE WE CAN''''T ALL BE ON WELFARE. SOMEONE HAS TO WORK FOR A LIVING.

Posted by smt1013

--------------------------------------------------------------------------------

The most naive and retarded bumper sticker on the planet. It proves how unintelligent conservatives are. This in no different then racism, which conservatives are really good at. They latch on to an idalogy no matter how untrue and then make it part of htere very fiber and soul.

which is why more and more people are learning how disgusting conservatives truly are and why they can never be trusted.

So please keep up the PR

[antoniof123]

This is the prelim numbers all it will grow just like it has over last year. It is called propaganda to make it seem as though the numbers are okay. My God haven''t we seen this over and over again.

When the final numbers come in they will be much worst just like the month before and the month before that.

Stop being so stupid.

[whatawebb]

I AM A REBUPLICAN BECAUSE WE CAN''''T ALL BE ON WELFARE. SOMEONE HAS TO WORK FOR A LIVING.

Posted by smt1013

-------------------

You''re a Republican so you can STEAL Our money and make yourself Rich on our hard work.

[omega40]

I AM A REBUPLICAN BECAUSE WE CAN''''T ALL BE ON WELFARE. SOMEONE HAS TO WORK FOR A LIVING.

Posted by smt1013

Go whine to the millionaires on Wall street that just walked away with $700 billion dollars of our tax money.

[bigboy1069]

I AM A REBUPLICAN BECAUSE WE CAN''T ALL BE ON WELFARE. SOMEONE HAS TO WORK FOR A LIVING.

[debinok1]

I wonder how many of us "Commentors" will soon be filing a claim. I wonder how many already are collecting unemployment. Hmm

Posted by mnelsonix
*******************
The comapny I work for is laying off. I still have my job "for now" that may change before summer. I have started updating my resume. How much use that will be with companies not hiring. I will find a way even if it means working at McDonalds.

[debinok1]

Yeah they fell but not because of fewer layoffs. They fell because most companies have holiday time off. So figure 5 days out of those two weeks people were off work for the holidays. Next weeks numbers will be even higher because the new year is finally here, people are back to work and companies will start the store closings and lay offs again. Especially once the reports for the full year profits and losses start hitting the CEOs desks. Just like Macys they waited until now to announce they are closing 11 stores in 9 states.