Jobless benefit claims rise again to 484,000- sign of a coming double-dip recession?
August 16, 2010 Leave a comment
Fox News and MSNBC both reported recently essentially the same information. Jobless benefit claims rose by 2000 to 484,000 which is the highest level since February (six months ago). These higher claims for unemployment benefits signal that unemployment is increasing and not decreasing like some had predicted.
These claims are “initial” claims or new claims presumably from new unemployed persons and these initial claims have risen in three of the last four weeks. Also these claims are edging up towards the 490,000 number reached in January 2010 which was the highest for this year. Could they possibly exceed that number soon?
Both news agencies report that this is “grim” news for those expecting recovery. Apparently economists watch these numbers closely because they reflect employers’ willingness to hire. These numbers seem to indicate that private employers are unwilling to hire new workers and that they are unsure about the direction of the economy. Some are probably expecting it to tank again.
This poor outlook in the private sector is accompanied by layoffs in the public sector. Government entities at the city, county, and state levels are all laying off workers to meet budget gaps. The higher the unemployment, the less tax revenue they receive and they already have a huge shortfall with these unfunded pension liabilities.
So what does this mean to you? Remember that there could be more layoffs coming so if you have a job you could be one of the unlucky ones to lose it. If you don’t have a job then it could become increasingly hard to get one.
If the economy does go into a double-dip recession then now could be a good time to file bankruptcy and unload that debt that you can’t pay for now and that will be even harder to pay for if another recession hits.