WASHINGTON (Reuters) – The number of U.S. workers filing new claims for jobless benefits surged to a 26-year high last week, government data showed on Thursday, as employers tightened their belts to help weather what many fear will be a deep, long recession.
A separate report showed the U.S. trade deficit swelled unexpectedly in October as weak economies around the world imported less from the United States.
Analysts said the export pillar that had helped to support the fragile economy earlier in the year was now crumbling and many said the economy appeared headed for an even deeper contraction in the fourth quarter than they had thought.
"The last bastion of the U.S. economy has collapsed. The U.S. economy will contract by 4.5 percent in the current quarter. The ugly recession accompanies us into the next year," said Harm Bandholz, an economist at UniCredit Markets & Investment Banking in New York.
Initial claims for state unemployment insurance benefits jumped by 58,000 to 573,000, the U.S. Labor Department said.
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