As the recession deepens, the layoffs are mercilessly increasing in magnitude - so vicious has the circle become that first-time claims for unemployment insurance touched a 26-year high last week!

The US Department of Labor reported that the four-week rolling average of initial jobless claims reached 558,000 for the period that ended December 20, in comparison to
544,250 the week before; the US unemployment rate remaining unchanged at 6.7 percent. Even the unemployment rate among those eligible for benefits, which tracks the jobless rate, remained at 3.3 percent.

The government's November employment report, released November 15, showed the four-week average at 507,000. Though the December report is due for release on January 9, increase in new claims were reported from twelve states and territories, for the week ending December 13, while 41 reported a decrease.

With 1,590 additional claims, Oklahoma reported the biggest increase in claims for the week that ended December 13; while with a decline of 20,526, North Carolina reported the biggest decrease.

The Commerce Department said that, in the third quarter, the US economy shrank at a 0.5 percent yearly pace. Due to the housing downturn spreading into an overall recession the world over, the weekly initial claims level has increased more than 200,000 since the year began.

With the labor market showing sure signs of deterioration, President-elect Barack Obama's expansion of economic stimulus goals includes creating or saving 3 million jobs in a two-year span.