USA unemployment now reaches 10 million (7.2%), highest in 40 years

naisho

naisho

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New Jobless Claims Surge to 626,000

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A sign on the downtown civic plaza directs citizens who need to file unemployment information to a satellite location in Elkhart, Ind. Wednesday Feb. 4, 2009. The U.S. Labor Department says that the Elkhart-Goshen area posted the largest jobless rate in the nation at 15.3 percent. (Joe Raymond - AP)

By Howard Schneider
Washington Post Staff Writer
Thursday, February 5, 2009; 10:50 AM

New claims for unemployment benefits spiked to a quarter-century high of 626,000 last week, as businesses continued shedding workers to cope with the economic downturn.

The number represents a larger-than-expected increase over the 591,000 people who filed for benefits the week before, and sets the stage for another jump in the unemployment rate for January when it is released on Friday.
The number of people continuing to collect benefits also rose, to nearly 4.8 million, and is now at the highest point since recordkeeping began about 40 years ago.
Weekly claims can be volatile -- major storms or other events can affect them on a short-term basis. But economists have watched the number of claims rise steadily in recent months to historically elevated levels. With tens of thousands of new layoffs announced in recent weeks and continued signs of weakness in retail, housing and other sectors of the economy, that trend may well continue.
"The wave of layoffs is still rising, and the run of terrible payroll numbers will continue," said Ian Shepherdson, chief U.S. economist for the High Frequency Economics consulting firm.

Weakness in the labor market did create one positive note for business: productivity jumped at a 3.2 percent annual rate during the last three months of 2008, as the decline in the number of hours worked outstripped a decline in the output of goods and services. Rising productivity helps control labor costs and keep inflation in check. The figure for the last quarter of the year was double that of the prior three months.

With unemployment currently at 7.2 percent and more than 10 million people out of work, creating jobs is a central aim of the economic stimulus plan being debated in Congress. The situation has become particularly acute in recent months, as job losses accelerated and major corporations announced layoffs numbering in the tens of thousands.

The crush of new benefit applicants has created backlogs at state unemployment agencies, and other data out today offered little prospect of relief.

Major retailers reported soft January sales, as consumers continued to keep their pocketbooks closed amid uncertainty about the future of the economy. Though some stores beat expectations, it was often because sales simply had not declined as much as expected -- modestly good news tucked inside a bad result.

Orders to U.S. factories also dropped for the sixth consecutive month in December, falling 3.9 percent. It is the longest period of decline since the Census Bureau began publishing the statistic in 1992.

Overseas, other governments are grappling as well for ways to boost economic activity. The Bank of England today cuts its benchmark interest rate to 1 percent from 1.5 percent, another record in the bank's centuries old history. The European Central Bank kept rates stable, but officials opened the door to a rate cut in March.

The weak data sent U.S. markets lower, with the Dow Jones industrial average off more than 1 percent in early trading. [/i]
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Aside from this, in countering-unemployment news: They recently approved or are in the process of re-evaluating a Federal Stimulus Bill, which the package is $888 billion altogether. They're debating about it in the Senate right now to cut it down by either 20%+ or leave it alone.

Not everybody, of course, agrees. Brian Darling, director of Senate relations at the conservative Heritage Foundation, acknowledges that the stimulus plan could provide jobs—at least in the short term. But that's nothing compared with the long-term damage the bill would do to the economy by swelling the deficit and "crowding out private enterprise" with federal spending programs, he says.

"We could spend $900 billion to hire people to break rocks. That would create jobs, but that wouldn't provide any long-term transformational stimulus to our economy," says Darling. "They're in essence saying, 'We need to get that money out there.' Well, if that's so, then why don't you just cut a check to every American and not go through the process of funneling it through federal bureaucrats' hands?"

"If you accept the Keynesian argument that somehow, government spending will magically transform our economy, then you like the bill," Darling says. "But if you believe that cutting the size of government, getting the government out of the way of the economy, allowing Americans to keep a higher percentage of their own hard-earned income, is true stimulus, then you're more of a conservative. This is a classic argument between the left and the right."
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What does one think about the rising unemployment and signing up for unemployment benefits? Would you consider it practical or impractical for some people?

Well, in the article above, I'm sure a majority of the unemployed who are filing came from private and/or corporate background. Federal gov' who became unemployed seems to still be at a minimum.

I'm currently not employed, but as a student. During the time that I became unemployed 'till now, I have never thought about signing up for unemployment benefits. At my previous job, I became careful enough to amass a small good amount of money which is making its use now, but like I think, I've never and probably will continue not to sign up for these benefits. If I lost my job and needed money.. I would try my best to get another should I need money, no matter how insufficient it is.. I would rather the money goes to someone who really needs it. But I do understand that there are some who are hooked up on these benefits at the expense of others.. Namely from our "Deaf English grammar" debate topic.
 
blame Obama!

Someone claim to saying it's during president currenty duty, they deserve to be blame. Don't you? :lol:
 
PowerON said:
blame Obama!

Someone claim to saying it's during president currenty duty, they deserve to be blame. Don't you? :lol:
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Obama's fixing the "mess that Bush created" which was "caused by Clinton".
Funny, it goes really long.
 
Brian said:
Unemployment rates - Unemployment rates by state from CNNMoney

It seems that Obama believe there is an easy fix in a jiffy. Sometime unemployment benefits is necessary to help people, especially when it comes to children and bills.
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To tell you the part about Texas. In west TX, it's very low low low unemployed rate and they are in hug demand need staff to hire.

If anyone willing live and work in dull west TX where plenty tumbleweed windy around.
 
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