Unemployment at 16-year high

WASHINGTON, D.C. (NBC) - The government announced unemployment claims hit a 16-year high Thursday morning, and the White House said President Bush is ready to help. Until now, the president had opposed an economic stimulus package, but Thursday the White House said there is one part of that stimulus he will support to help Americans who have lost their jobs.

A total of 542,000 people filed for unemployment last week, more than the week before. This swells the total number of jobless Americans to 4 million. Congress has already extended unemployment benefits once and wants to do it again. The White House said the president will support them.

"The plan we'd support right now is seven weeks additional unemployment insurance, on top of the 13 weeks, plus an additional 13 weeks in states that have high unemployment," said White House Press Secretary Dana Perino.

A lot of those lost jobs are in the auto industry, and with automakers in a major cash crunch, things could get worse.

"In the auto industry alone, with its trickle-down companies, you're probably talking about in excess of 5 million jobs," said Sen. James Webb of Virginia.

Michigan has already lost 400,000 jobs and could lose more if one of the "Big Three" goes under. Efforts to loan automakers $25 billion from the government's financial rescue have stalled on Capitol Hill.

sot - sen. harry reid / (d) nevada / majority leader 1:00 - 1:07
"It may be necessary that we come back after Thanksgiving," said Majority Leader and Sen. Harry Reid. "Everyone just stay tuned, and we'll do the very best we can."

Democrats and some Republicans are for the additional loans. The Bush administration is against them.

sot - sen. debbie stabenow / (d) michigan 1:13 - 1:25
"I understand people's frustrations about bailouts and so on, but we're talking about 4 percent of $700 billion, 4 percent to keep 3 million people working," said Sen. Debbie Stabenow of Michigan. "I don't think that's too much to ask."

Yet, it appears to be too much to expect before the holiday. Asked why the president changed his mind and now supports extending unemployment again, Perino said "because conditions on the ground changed." Unemployment is at 6.5 percent.