As funds from President Obama's economic stimulus package begin to arrive in the states and new investments in infrastructure and job-saving programs start to flow, does new data from the Department of Labor suggest that the dismal unemployment situation may be turning a corner?
According to statistics released today, April 9, initial jobless claims for unemployment benefits decreased over the previous week by 20,000. The moving four-week average fell slightly, although by a statistically insignificant number.
In the month of March, the unemployment rate jumped to a 25-year high of 8.5 percent after the economy shed more than 660,000 jobs. Since the beginning of the recession in December 2007, more than 6 million jobs have been lost.
While some states like California, Pennsylvania, Missouri and six other states saw new jobs created, the hardest hit last week was Kentucky with more than 5,000 layoffs across the state in the seven-day period. Michigan lost an additional 4,428.
According to data provided by both states, job cuts in auto and the manufacturing sector generally caused the sharpest decline.
State and local governments are anxious to launch new infrastructure projects and pay down budget shortfalls with federal economic stimulus. New projects on roads, bridges and airports slated for the next few weeks and months, along with new financing for public schools is expected to create or save thousands of jobs.
The worsening jobs picture prompted the AFL-CIO this week to launch a new Web site designed to help unemployed workers find the resources they need to survive in the recession. The Unemployment Lifeline, as the site is called, provides information on local aid for unemployment compensation benefits, child care, medical care, utility assistance and more. It also links workers to political action on such issues as passing the Employee Free Choice Act, universal health care reform and more.
Economists warn that good signs from an indicator such as a weekly jobless claim report should be taken with a grain a salt. Such reports are often revised, are only a snapshot of a given moment, and do not yet indicate trends.
