US jobless at 26-yr high
In a clear indication of recession in the USA economy number of unemployed has increased to highest level in last 28 years. The US Labour department has said that now more people are drawing unemployed benefits. The increase in the beneficary seekers means more job cuts and analysts suspects around 250,000 to 550,000 jobs could have been cut by companies.
THE number of US workers collecting jobless benefits hit a 26-year high last month, data showed on Thursday, and it may head higher as a deepening economic slump forces a broad spectrum of firms to cut jobs.
Contributing to the labor-market gloom, a host of US companies announced large-scale layoffs, including top US phone company AT&T Inc, which is eliminating 12,000 jobs, and chemical maker DuPont, which is cutting 2,500.
Leading US retailers also reported dismal November sales on Thursday. Toting up the results, the International Council of Shopping Centers said sales fell by a record 2.7 per cent compared to the same period last year.
Economists said the latest batch of dour news for the world's largest economy, which fell into recession a year ago, pointed to a downturn that could be the sharpest and longest since the downswings in the early 1980s.
'It provides more signs that the recession is going to get a little bit deeper. The numbers today fit with the scenario that fourth quarter GDP is down probably in the neighborhood of four per cent,' said Mr Michael Strauss, managing director and senior economist at Commonfund in Connecticut.