The number of laid-off workers continuing to draw unemployment benefits bolted to 4.5 million in late December, and even more Americans are expected to join the ranks of the jobless in 2009.

While first-time applications for jobless benefits dropped last week, economists mostly attributed that to the Christmas holiday and cautioned that a more accurate picture of new layoff filings won’t become clear until the holiday season is passed — around mid-January.

All in all, though, the picture that emerged Wednesday was largely grim and is not expected to improve any time soon.

“It wasn’t a very merry Christmas for most of the labor force and it doesn’t look like it will be a very happy New Year, either,” said Richard Yamarone, economist at Argus Research.

The Labor Department’s report showed that people continuing to draw unemployment benefits jumped by 140,000 to 4.5 million for the week ending Dec. 20, the most recent period for which that information is available. The larger-than-expected increase underscored the difficulties the unemployed are having in finding new jobs.

That left continued claims at their highest since early December 1982, when the country was emerging from a deep recession, though the labor force has grown by about half since then.

A year ago, the number of people continuing to draw jobless benefits was 2.7 million.

The report also showed that the number of newly laid-off workers filing first-time applications for jobless benefits dropped by a seasonally adjusted 94,000 to 492,000 for the week ending Dec. 27.

That decline, however, didn’t signal any improvement in labor conditions. The drop — while bigger than economists expected — was mostly related to seasonal adjustment difficulties and reflected some out-of-work people not making it to unemployment offices to file claims over the Christmas holiday, analysts said.

Even with the drop, new filings remained elevated. A year ago, claims stood at 339,000.

Similarly, the four-week moving average of first-time jobless claims, which smooths out week-to-week fluctuations, fell last week to 552,250, a decrease of 5,750 from the prior week. A year ago, this figure was 344,500.

Economists expected so-called “continued” claims to rise to around 4.38 million, and that first-time applications for unemployment benefits would drop to around 550,000.

On Wall Street, investors took some comfort in the drop in first-time unemployment claims. The Dow Jones industrials added nearly 110 points on the last trading day of a tumultuous 2008.

Next week’s jobless claims report also is likely to be distorted by another shortened holiday week because of New Year’s Day, analysts said.

“The bottom line here is that it probably won’t be until mid-January that we begin to get a clear picture of what claims are saying,” said Abiel Reinhart, economist at JPMorgan Chase Bank.

Economists predict the jobs situation will get worse before it gets better.

Brian Bethune, economist at IHS Global Insight, predicts first-time filings for jobless benefits will climb back up to 550,000 or higher in the middle of January and stay in that elevated range for some time.

Meanwhile, the nation’s unemployment rate — which zoomed to a 15-year high of 6.7 percent in November — is expected to rise to 7 percent in December when the government releases that report next week. If that proves correct, it would be the highest level since June 1993. Economists also are predicting employers eliminated another 478,000 jobs in December alone. In November, 533,000 jobs vanished.

Many economists believe the unemployment rate will keep climbing — hitting 8 percent or close to 10 percent at the end of 2009.

Employers have slashed payrolls as they scramble to cut costs. The deepening recession, disappearing jobs, shriveling nest eggs and tanking home values have forced consumers to cut back, which is hurting businesses.

Atlanta-based Interface Inc. on Tuesday said it will lay off about 530 employees to cope with weakening demand for its carpet products.

Other companies that announced mass layoffs recently include: technology services provider Unisys Corp., pharmaceutical company Bristol-Myers Squibb Co., International Paper Co. and Bank of America Corp.

Since the recession began in December of 2007, the economy has lost nearly 2 million jobs.

Spurring job creation is a key priority for President-elect Barack Obama, who takes over on Jan. 20. He is contemplating a massive package of government spending and tax cuts to stimulate the economy.

West | View Regional Video

A powerful storm will whack into the Pacific Northwest tomorrow and tomorrow night–Happy New Year!–bearing high winds, heavy rain and abundant mountain snow.

The strongest winds will rip through Oregon and southern Idaho and may leave at least minor damage in their wake.

The heaviest rain, several inches, will inundate southwest Washington and northwest Oregon; rivers will be on the rise as will concerns over flooding.

Heavy snow will add to the already prodigious totals in the Olympics and Cascades, but snow levels will be fluctuating wildly. They’ll start out the day in the 2000- to 3000-foot range and end up ranging from 3000 feet in the northern Washington Cascades to 6000 feet in the northern Oregon Cascades. Snow levels will tumble tomorrow night, however, as a strong cold front sweeps in off the Pacific.

More snow is on tap for “polarized” Spokane, too, although it may mix with or change to rain tomorrow night before colder air returns on Friday.

Meanwhile, heavy snow will also fall in the mountains of northeast Washington, Idaho, western Montana and western Wyoming.

In contrast to this stormy blitz, sunshine will prevail from Southern California to New Mexico tomorrow.

High temperatures are forecast to range from the teens in northeast Montana to the low and mid-70s in parts of Southern California, southern Arizona and far southeast New Mexico.

Midwest | View Regional Video

Light snow and snow showers will dust the Upper Midwest and eastern North Dakota tomorrow, but accumulations will be minimal: perhaps an inch or two in northern Minnesota, far northern Wisconsin and northwest lower Michigan.

High temperatures will be near to somewhat above average for the first day of January with readings ranging from around 10 in parts of northern North Dakota to the 50s in southwest Kansas.

Northeast | View Regional Video

Windy, cold conditions will greet the New Year in the northeastern U.S. tomorrow, especially across eastern New York state and New England.

The day should be dry, however, except for a few snow flurries or isolated light snow showers in far northern New England and perhaps on Cape Cod.

High temperatures will range the wind-chilled single digits in the higher elevations of far northern New England and the Adirondacks to the mid-40s in parts of southern Virginia.

South | View Regional Video

Except for a chance of a stray shower across the southern half of the Florida Peninsula and in the Texas coastal plain tomorrow, the southern U.S. will be dry to start 2009.

Abundant sunshine will grace the day from Oklahoma and northern Texas eastward through the Deep South.

High temperatures are expected to range from the upper 30s in the higher Appalachians to the upper 70s around Brownsville, Tex.

PNC Financial Services Group Inc. said Wednesday it has completed its acquisition of National City Corp., a Cleveland-based bank that dates back to 1845.Pittsburgh-based PNC is the first U.S. bank to use money obtained under the government’s $700 billion bailout program to make an acquisition. PNC and National City announced plans for their $5.6 billion deal on Oct. 24.

The Justice Department has told PNC it will have to sell 61 National City branches in western Pennsylvania to satisfy antitrust concerns.

National City had been Ohio’s largest bank, but it experienced a sharp drop in its stock value and experienced billions of dollars in losses due to its heavy exposure to risky mortgages it had offered to customers.

Due to popular demand, America’s premier comedian is hitting the road in a return to his first love - stand-up comedy. Recently hailed as “the master stand-up comic of his generation” and “the best comedian of our time” in a Washington Post article by Tom Shales, Seinfeld has an uncanny ability to joke about the little things in life that relate to audiences everywhere. Seinfeld now sets his sights on performing his material across the country in 2009.

His appearence will be one of the first shows of the season, information on that show is below.

Presented by: Trust Guest Attraction
Venue: Benedum Center - [ View Seating Chart ]
Saturday, January 3, 2009; 7:00 PM and 9:30 PM
Tickets: $79, $64, $49

A Pittsburgh-area stainless steel manufacturer has laid off more than 200 people since October.President of the USW Local 1212 at Midland Steve Clutter says only about 10 of the 230 people who had worked at the plant still have jobs.

Allegheny Ludlum says the layoffs at its Midland facility could last six months or longer. The company told the state the “unprecedented economic conditions have caused a sudden and unexpected reduction in our business.” The company says four supervisors and 205 hourly workers have been let go.

In August, the company was operating at full capacity and seeking new workers. But fourth quarter order dropped 50% below projections and remained that low.