Extended U.S. jobless aid rise clouds labor picture

WASHINGTON (Reuters) - The number of unemployed U.S. workers seeking emergency relief under federal programs rose at the end of October, the government said on Thursday, clouding the picture of the weak jobs market.

The number of long-term unemployed who have exhausted their state benefits and qualify for emergency federal aid under the 2008 Emergency Unemployment Compensation program rose 101,838 to 3,622,091 in the week ended Oct. 31, the latest week that date was available, the Labor Department said.

A second joint state-federal program that offers aid to workers after they have exhausted their benefits under the EUC program also rose, climbing 17,170 to 540,665 in the Oct. 31 week.

"With jobless benefits recently extended for another 14 weeks in all states and another 20 in states with high unemployment rates, the emergency rolls are likely to remain swelled for some time," said Omair Sharif, an economist for RBS in Greenwich, Connecticut.

The data signals a further rise in long-term unemployment, even as initial weekly claims for state unemployment insurance appear on a downward trend, suggesting the pace of layoffs is easing. A four-week average of initial claims dropped for the 11th straight week last week to its lowest level in a year.

The National Employment Law Project estimated that the new jobless aid extension program approved earlier this month will still leave 30,000 workers a day without any benefits in January and by March those numbers will swell to nearly 3 million workers.

The 2008 EUC phases out at the end of the year and no one will be able to apply after Dec. 26. However, those already in the program can continue in a particular level of benefits they are collecting into next year.

The additional 14 to 20 weeks of benefits signed into law by President Barack Obama this month are now available to workers who have exhausted aid under the other two extended benefit programs, although some states may still be processing applications.

The latest extension gives jobless workers who have exhausted their benefits an additional 14 weeks of support, with workers in states where the unemployment rate is about 8.5 percent or higher getting an additional six weeks of benefits.

(Reporting by Nancy Waitz; Editing by Kenneth Barry)