Jobless claims rise again last week…
After seeing a sharp drop in new jobless claims in the week ending July 9th, the Labor Department released statistics for the week ending July 16th and the news isn’t what we were expecting. Last week, claims rose 37,000 to a seasonal average of 464,00 mostly due to seasonal factors but it also indicates continued weakness in the job market. A healthy economy generally has new claims below 400,000, a number not seen since before the depression begain in early 2008.
The Fed has indicated that the job market will continue to show signs of weakness and slow growth as the economy slowly recovers. The government is expecting the unemployment rate to remain above 9% for the rest of this year due to a variety of factors. Consumers continue to limit their spending which might be good for their personal finances but it is also slowing the economic recovery. The housing market continues to be depressed with no real positive oulook for the foreseeable future. Worst of all, businesses across the nation continue to limit their hiring because of all the uncertainty that is hanging over the economy. How will health care and the new financial bill impact businesses? Will the rising deficit hurt the US economy internationally? Did the eurozone escape its debt crisis? All of these questions are being asked not just by the Fed but also by business owners as they try and determine where the economy is heading over the next 12-18 months.
Stay tuned for more updates as they become available.
Stephan Tavernini
Marketing Coordinator
IAPDA Certified Debt Arbitrator
Preferred Financial Services
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