Unemployment claims at 16-year high - and Fed says number will go higher

November 20, 11:17 AMEmployment News ExaminerDarrell Proctor

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The government said U.S. unemployment claims are at a 16-year high, with initial jobless claims at a seasonally adjusted 542,000 for the week ended Nov. 15.

That's the highest level since July 1992. The Labor Department report gives more evidence the U.S. is headed toward an "official" recession; the Federal Reserve said the jobless rate could climb to 7.6 percent in 2009, and it signaled a recession is likely imminent when it cut its 2009 economic growth forecasts on Wednesday.

The unemployment rate, at 6.5 percent at the end of October, already is at a 14-year high.

"As far as we can tell, companies have thrown in the towel since September, and are now hunkering down for a deep and extended recession." - Ian Shepherdson, economist at High Frequency Economics

The Labor Department says 4.012 million people are receiving unemployment benefits, the most since since December 1982.