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The growing number of layoffs is making new jobs harder to find
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Published: January 9, 2009
WASHINGTON
The number of laid-off workers who are continuing to draw unemployment checks jumped more than expected to 4.6 million at the end of December and is likely to keep climbing this year -- fresh evidence that people are finding it increasingly difficult to get a new job amid a deepening recession.
The Labor Department's report yesterday also said that first-time applications for jobless benefits dropped to 467,000 last week. But economists largely described that decline as a distortion, reflecting the government's difficulty in making seasonal adjustments over the holiday period. Even with the dip, the figure still signaled trouble in the labor market. A year ago, initial claims stood at 330,000.
Persistent economic woes -- housing, credit and financial crises -- along with a flurry of layoff announcements in the opening days of 2009 all point to another terrible year for job-hunters, economists said.
Barbara Slavin of Los Angeles said she knows that frustration.
"Many of the jobs I applied for, I was qualified for and didn't get them," lamented Slavin, 67, who was laid off last month as an executive assistant for a local Girl Scouts chapter. "I got a lot of energy. I like to work, and I don't know anybody who can live on Social Security alone."
She has worked at a variety of places over the years, including a catering kitchen and a software company.
The government's report showed that the number of people continuing to collect unemployment benefits rose by a sharp 101,000 to 4.6 million for the week ending Dec. 27, the most recent period for which that information is available. It was worse than the 4.5 million level of claims that economists had expected.
That increase left continued claims at the highest since November 1982, when the country was emerging from a deep recession, though the labor force has grown by about half since then. A year ago, this figure stood at nearly 2.7 million. The increase underscored the painful deterioration that has occurred in the jobs market.
"Workers getting laid off are not going to get hired anytime soon," said John Silvia, the chief economist at Wachovia.
Some economists say they believe that the number of people drawing unemployment benefits could rise as high as 5.5 million this year -- even if a new government stimulus package is enacted.
President-elect Obama called for a bold approach to revive the moribund economy.
"I don't believe it's too late to change course, but it will be if we don't take dramatic action as soon as possible," Obama said yesterday, the fourth straight day that he has talked about the economy, the No. 1 concern of most Americans.
"If nothing is done, this recession could linger," he warned. "The unemployment rate could reach double digits."
With employers throttling back hiring, the unemployment rate is expected to jump from 6.7 percent in November to 7 percent last month, which would be the highest in 15½ years. The government will release that report today.
Obama, who assumes office Jan. 20, is championing a massive package of tax cuts and government spending that could total $775 billion over two years. With add-ons by legislators, the package could swell to $850 billion, his advisers say.
"Only government can break the vicious cycles that are crippling our economy -- where a lack of spending leads to lost jobs, which leads to even less spending," Obama said.
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