Unemployment Payments Hit Five Year High

Unemployment Payments Hit Five Year High

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The number of Americans on unemployment benefits surged to the highest level since 1983, presaging a jump in the unemployment rate when the Labor Department issues its October jobs report tomorrow.

Three-point-eight-four-three million workers got unemployment checks in the week ending October 25th, up 122,000 from the prior week. A separate report showed worker productivity slowed last quarter as the economy contracted.

The underlying trend in claims is rising, and we'll see confirmation tomorrow that the job market is deteriorating rapidly,'' economist Nigel Gault told Bloomberg.

Economists predict that another 200,000 jobs were lost last month, and that the unemployment rate has climbed to a five-year high of 6.3 percent. This may spur government efforts to approve a second fiscal stimulus this year, including an extension of benefits to help ease the hit to consumer spending.

There were 481,000 first-time applications for jobless benefits last week, compared with 485,000 a week earlier.

Labor costs climbed at a 3.6 percent pace, more than anticipated.

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