Jobless Claims Hit 16-Year High, Above Forecast

The number of U.S. workers filing new claims for jobless benefits surged last week to their highest level in 16 years, Labor Department data showed on Thursday, as a harsh economic environment forces employers to cut back on hiring.

Initial claims for state unemployment insurance benefits were a seasonally adjusted 542,000 in the week ended Nov. 15 from a revised 515,000 the previous week. That was higher than analysts’ forecast for a reading of 505,000 new claims.

U.S. stock futures tumbled on the data and Treasury debt prices edged higher, attracting a safe-haven bid. The U.S. dollar deepened losses against the yen.

The latest data has added to fears that the U.S. economy faces a deep recession and paints a gloomy outlook for the labor market.

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“This report paints a pretty bleak job picture for mid-November and reinforces the comments from the Fed yesterday almost guaranteeing a sizable Fed rate cut at the next Fed meeting on Dec. 16,” said Cary Leahey, economist at Decision Economics in New York.

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