Amid an Economic Recovery, Jobless Claims Rise

Published Tuesday, June 22, 2010 @ 5:02 pm

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Are you one of the millions of Americans still out of work and, at the same time, wondering why so many “experts” are forecasting the end of the economic downturn? Well, you’re not alone. Last week, jobless claims rose again after three straight periods of decline—a new bellwether that people just like you are still facing unprecedented unemployment and lingering layoffs.

According to The Huffington Post’s Alan Zibel, “Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. It was the highest level in a month and overshadowed a report that showed consumer prices remain essentially flat. The rise in jobless claims highlighted concerns about the economic rebound – especially after a report earlier this week said home construction plunged in May after government tax credits expired. If layoffs persist, there’s a concern that the June employment numbers may show a decline in private-sector jobs after five straight months of gains, said Jennifer Lee, an economist with BMO Capital Markets. ‘We’ve definitely seen the economic recovery hit a wall,’ Lee said.”

Following a steady decline in jobless claims in the latter half of 2009, the “wall” Lee mentions can easily be witnessed in unemployment lines around the country, as first-time jobless claimants remain steady (near 450,000) since the start of 2010. And while many economists have been forecasting that unemployment filings would drop under 450,000 in recent weeks, Kevin Logan, an economist with HSBC Securities informed HuffPost that recent figures are sparking more and more economic pessimism. “The wait is getting longer and longer,” Logan tells Zibel. “As each week goes by, doubts about the underlying strength of the economic expansion grow.”

As such, amid flat consumer spending and a wideningFederal deficits, layoffs still rank highest in lingering concerns about the “wheres?” and “whens” of our nation’s still distant economic recovery.  And with economists further speculating that sustained career creation won’t kick start until unemployment claims lower to the 425,000 per week mark, there “whens” of the recovery are as fuzzy as a job mirage in a recessionary desert.
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Just as it got harder to find a job, it’s also becoming harder not to have one. Zibel reports that, “The number of people continuing to claim benefits rose by 88,000 to 4.57 million. That doesn’t include about 5.2 million people who receive extended benefits paid for by the federal government. Congress has added 73 weeks of extra benefits on top of the 26 weeks typically provided by states. All told, about 9.7 million people received unemployment insurance in the week ending May 29, the most recent data available. The extended benefit program expired this month. The House has approved an extension of the benefits through November. The Senate has yet to act.”

As a result, many beleaguered individuals are taking things into their own hands to address their financial woes and take back their fiscal freedoms—making a fresh start through bankruptcy. In fact, knowing a qualified bankruptcy attorney can help any unemployed person to conquer their creditors and face their financial fears, yielding the right kinds of support, information and insights—at a low cost— to start anyone on their way to a more viable and secure future.  The bankruptcy experts at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-800-899-1414, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.

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