WASHINGTON --- New claims for jobless aid fell less than expected last week, and the number of Americans continuing to receive unemployment benefits rose -- further signs that any economic recovery will be hindered by a weak job market and flat incomes.
Most economists think the recession is over, but they say the jobless rate will keep rising until at least next summer as the economy struggles to mount a sustained recovery. That means household incomes will remain depressed and consumer spending, which accounts for 70 percent of the economy, will continue to lag.
"Firms are still not hiring, and that reflects deep pessimism about the sustainability of the economic recovery once government stimulus programs wear off," said Sal Guatieri, senior economist at BMO Capital Markets. "The lack of job creation remains a big headwind for cash-starved and credit-constrained consumers."
Major retailers on Thursday reported lackluster results from August back-to-school sales. Results in established stores fell 2.1 percent in August compared with the same month last year, according to a compilation of 31 retailers' results by the International Council of Shopping Centers and Goldman Sachs. Some major discounters managed to exceed expectations.
The Labor Department said the number of laid-off workers applying for benefits dipped to 570,000 from an upwardly revised 574,000 the previous week. That was a smaller improvement than economists had expected.
The number of Americans continuing to receive benefits jumped to 6.23 million, up 92,000 from the previous week and a reminder of the difficulty people are having finding jobs. The continuing claims data trail new claims by one week.
The recession, which began in December 2007, has eliminated a net total of 6.7 million jobs. That toll is expected to grow today, when the government reports the unemployment rate for August. Economists predict the jobless rate, now at 9.4 percent, will rise to 9.5 percent, with 225,000 net job losses in August.
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To those that are employed and insured be sure to give thanks to your situation as it is.As the unemployed ranks rise and the number of uninsured increase(due to no job)make sure you keep your little job.Yes, your little job because thats who it is that is paying the brunt of this leadership mistake.The little poor working slob who may lose his job tomorrow because the owner of his company decided to move his business to Mexico.Cheap labor he says,gotta go,good luck to you and your family.What do you do?Get another job? No, you love America so you change it! Don't believe in that old saying"America love it or leave it",Believe in" America love it or change it"I believe we must give democracy a chance but remember our national leadership has dictated our economic policy and direction,look where we are now.I think there needs to be some kind of national law that penalizes those who ship jobs overseas.I know the free market objects to this kind of action, but I'm talking about people eating again and preserving the American way of life.As an American people should start a national boycott of all non American made goods.running out of characters will continue in new comment
Anyone falsifying their products as American made should suffer severe punishment.We must change America for the better and if we support each other we can weather this hard time.Our leadership(not just elected officials but also corporate heads and wall streeters) must be redirected in a course that provides for the average working American citizen,not his personal pocket book or some some dude in Nepal.America can take care of its own and right now we need to do just that.Take a good look at where you spend your money,who your elected officials associate with,(Sanford going to S.America, ever wonder how much money, if any' was invested by S.C. taxpayers,south of the border)is my neighbor a legal citizen,and other common sense questions that allow that dollar bill to stay here.What I'm saying is that America needs Americans to help Americans because nobody else is gonna do for America what America will do for itself.
The rate was lower during the housing boom. But the housing boom should have never happened and the rate should have been higher. This means the fake-me-out life of luxury and abundance of jobs rode the rails of lies and mistakes under dubyah (failure to regulate Wall Street and it's fuel called credit default swaps). In the end we have failed banks, limited credit and layoffs. To make matters worse the population exploded during the fake-me-out housing boom and now you have a lot m dubyah ore people chasing fewer jobs. If we frame all of this with the fact that we live in a world where computers make it possible for businesses to do more with less. It's a perfect storm for naturally high unemployment. That is our reality and it will be tough (at first) but Obama can only do so much to increase employment. The rate is supposed to be higher than in the past.