Jobless Claims Rise

From Market Watch:

Weekly Jobless Claims Rise
Trend at highest level since 1982

The gain in the most recent claims data restarts an upwards trend that analysts had expected. Initial claims had declined in the prior two weeks, likely due to difficulties in accounting for seasonal adjustments.

The underlying trend in claims is still rising, and could reach a peak of 750,000, according to Ian Shepherdson, chief U.S. economist with High Frequency Economics.

"The experience of previous deep recessions suggests claims are nowhere near their peak, and we doubt that peak will be reached before the fall of this year," Shepherdson said.

However, the four-week average of new claims fell 8,000 to 518,500 -- a level that is 55% higher than the average during the same period in the prior year.

Meanwhile, the number of people collecting benefits in the week ending Jan. 3 fell 115,000 to 4.5 million, a level that is 64% higher than the prior year.