Initial jobless claims in US rise to 542,000

Bloomberg

Initial jobless claims increased by 27,000 to a higher-than-forecast 542,000 in the week ended Nov. 15, from 515,000 the prior week, the Labor Department said yesterday in Washington. The number of people staying on benefit rolls the prior week rose to 4.012 million, the most since 1982.

Job losses in the U.S. have totaled 1.2 million this year as the economy entered a downturn exacerbated by the worst credit crisis in seven decades. More firings will weigh on the economy and consumer spending, putting pressure on President-elect Barack Obama and Congress to agree on legislation that will stimulate growth.

"Layoffs are likely to accelerate into the year end," Lena Komileva, chief economist at Tullett Prebon in London, said. "The economy is at the start of a prolonged and deep recession, which puts more pressure on the new administration to implement further fiscal stimulus."