U.S. Jobless Claims Reach Highest Level In 8 Months
In a surprise and disturbing development, weekly unemployment assistance claims in the United States have reached 474,000. This is the largest weekly jobless claims report in eight months, and an increase of about ten percent over the prior week, despite predictions by economists that this week’s jobless report would actually show a drop in unemployment claims.
The current report is a major negative shift from several weeks earlier, when jobless claims dropped below 400,000. The unexpected and rapid acceleration in jobless claims is a clear indicator that the U.S. economy remains mired in deep crisis, with persistent and historically high rates of unemployment.
With the Obama stimulus expenditures running out of steam, a Republican dominated Congress unwilling to further increase deficit spending for more stimulus, and the Federal Reserve’s massive monetary intervention proving to be ineffective in facilitating job creation, all the signs are that the American economy is headed for a double-dip recession.
