Jobless claims jump to 16-year high at 542,000 claims

November 20, 2008 by · Leave a Comment
Filed under: Economic News 

Reality is setting in, we are in recession and it is getting deep.  In the news piece, they mention we have just over 4 million people getting unemployment benefits as well.  Most economic analysts are calling for at least 9-11% unemployment.  Another stimulus package is in the works and congress is working on extending unemployment benefits as well.  

This is fine but it is only a band-aid for our real problems.  We need to lets prices fall in all asset classes so we have a sustainable price level people can afford and we need to work on job creation, focusing on manufacturing and exports.  The goal should be to get us from a unrealistic service-based economy to a economy that makes things the world want to purchase along with our own citizens.

News:

First-time filings for unemployment benefits shot up to their highest level since July 1992 last week, rising 27,000 to a seasonally adjusted 542,000 and punctuating the struggling state of the U.S. labor market, government data showed Thursday.  Meanwhile, the number of people receiving benefits rose to 4.01 million in the week ending Nov. 8, the highest level in 26 years.

“This is a horribly weak report,” wrote John Ryding and Conrad DeQuadros of RDQ Economics. Recent trends in initial claims are consistent with a staggering loss of 400,000 nonfarm payrolls, they said.

The four-week average of claims — which smoothes out events like weather or strikes — also climbed in the latest week, rising by 15,750 to 506,500, the government said. That was the highest since January 1983.
The insured unemployment rate increased to 3.0% from 2.9%.
Source: MarketWatch         

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