Unemployment Claims Rises To Its Highest Level Since March

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(e3global)- In Washington today fears grew that the economic recovery is worstening after the government and private sector issued weak reports on a number of fronts.

Unemployment claims are up, home sales are plunging without government incentives and manufacturing growth is slowing.

Meanwhile, 1.3 million people are without federal jobless benefits now that Congress adjourned for a weeklong Independence Day recess without passing an extension. That number could grow to 3.3 million by the end of the month if lawmakers can't resolve the issue when they return.

All of this worries economists. As jobless claims grow and benefits shrink, Americans have less money to spend and the economy can't grow fast enough to create new jobs. Some are revising their forecasts for growth in the third quarter. Others are afraid the country is on the verge of falling back into a recession.

"We find the level and direction in jobless claims somewhat troubling and the increase is likely to feed double-dip fears," said John Ryding, an economist at RDQ Economics in a note to clients.

New claims for benefits jumped by 13,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. The four-week average, which smooths fluctuations, rose to 466,500, its highest level since March.

Claims have remained stuck above 450,000 since the beginning of the year. Requests for unemployment benefits dropped steadily last year after reaching a peak of 651,000 in March 2009. Economists say they will feel more confident about sustained job growth when initial claims fall below 425,000

Adding to that is the growing number of people who stand to lose government support while they search for work.

For the third time in as many weeks, Senate Republicans blocked a bill Wednesday night that would have continued unemployment checks to people who have been laid off for long stretches. The House is slated to vote on a similar measure Thursday, though the Senate's action renders the vote a futile gesture as Congress prepares to depart Washington for its holiday recess.

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2 Comments

#1
ESLA SINCLAIR (Monday, 12 July 2010 03:23)

Dem Re..pub..lic..ans seems to be stumbling blocks to America and the growth of it's people. A leading party should by all means lead without any interferance whatsoever as long as their plan contributes positive effects on the country and the people. A country like America should not be in the position it's in now. By now congress should know what works and what won't, this is elementary crap. Everything is controlled and fully monitored, so it seems.. or is it not? After so many years of diplomacy, dictation, and dedication, I think problem solving should be a breeze among American leaders. The support of the people rest loyally in their leaders hands and yet..... pitfalls. I think everyone know the extent to which ISSUES and DEADLINES can affect a situation, especially when a matter is drawn out for too long. We are not talking about high school graduates making decisions here, We are talking about the most educated and qualified individuals assigned to conduct and lead a great country. President Obama is only one person compare to the number of people in America, His intentions as a leader is great, his ethics and strategies are superb, but implementing them needs THE COUNTRY'S PARTICPATION. The world was not built in one day, and a country's SUCCESS is not only to make its leaders happy, but to bring hope to the people. I can see the headlines if this shit continues and the country heads for a dip. I just know which direction the finger will point. I truly hope a solution comes about and those oposing the bills would remove the wedge from their butts and give President Obama the support and a fair chance to lead this country. Time wasted can't be bought back and everything is a statistic so, it's imperative that a solution is in put in order and Americans really need to trust God.
#2
skywise (Monday, 12 July 2010 15:22)

Well said, its just amazing how America is supposed to be so powerful and always seems to have the answers for other country but not there own.