The Labor Department reported today that the number of newly laid off workers applying for benefits dropped to 601,000 last week. According to the Labor Department, that was far better than the rise to 635,000 claims that had been expected!
Wow! Now that’s what I call grasping for straws and trying to be optimistic at all costs. I know that the government is trying to spin the economic problems and try and put somewhat of a positive face on things, but 601,000 new claims for unemployment, which means 601,000 new lost jobs, doesn’t sound too optimistic to me. What I would like to read is the number of new jobs created and the number of people who went back to work…unfortunately, I don’t think those numbers exist.
By the way, the Labor Department also reported that the total number of unemployed workers getting benefits climbed to a new record high of 6.35 million, and that’s just the number of people actually getting benefits. It does not count those whose benefits have run out and who are no longer getting benefits.
This is why both the housing and auto industries are still in big trouble and will probably stay in big trouble for a long time yet. With people still losing their jobs and other people still afraid of losing their jobs, people are afraid to make big, long term purchases no matter how much credit the banks make available. Not until the employment situation stabilizes will these industries begin to recover.
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