After a disappointing unemployment report earlier this month that saw the loss of 467,000 jobs in the month of June and a rise in the unemployment rate to 9.5 percent, predictions of an economic turnaround soon have fallen flat. Despite positive signs in housing and manufacturing activity, poor jobs number remain the "lagging economic indicator."
Glimmers of economic hope were overshadowed by this month's new jobless numbers. According to Department of Labor statistics released today, July 8th, 6.76 million people received unemployment benefits during the week ending June 27th, a jump of 159,000 over the previous week. Over the previous month, that number had grown slightly.
DOL also reported that initial jobless claims for unemployment benefits for the week ending July 4th decreased over the previous week by 52,000 to 565,000. This means that 565,000 newly laid-off people filed for unemployment benefits during that week. This week's numbers put the moving four-week average down by about 10,000, the DOL reported. (This week's declining jobless claims may be due more to the four-day week before the holiday in which fewer claims could be filed than in any serious drop in the numbers of layoffs.)
By comparison, in November 2007, the month prior to the official beginning of the recession, the weekly average of new jobless claims stood at just over 325,000.
According to the DOL figures released July 2nd, the unemployment rate rose a point to 9.5 percent in the month of June, higher than economists have predicted. The bright spot, if it could be called such, was that the loss of 467,000 jobs in that month is well below the average monthly decline over the previous seven months. For the growing number of unemployed, however, there is little consolation.
The number of unemployed workers jumped to 14.7 million in the month of June, a rise of 7.2 million since the beginning of the recession in December 2007.
Accurately sensing a growing anxiety among Americans that an economic turnaround hasn't been swift enough, the Obama administration this month made a strong push to announce the speed up of economic stimulus projects. Some administration officials have signaled the need for a second stimulus package.
While the President's recovery act passed last February has worked as expected, experts state, the hole in the economy has been far larger than expected. Labor movement leaders reportedly have begun lobbying for a second economic package that will focus directly on filling the massive jobs deficit.
The worsening jobs picture prompted the AFL-CIO to launch a new Web site, Unemployment Lifeline, designed to help unemployed workers find the resources they need to survive in the recession. The site 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.
AFL-CIO President John Sweeney called for sweeping action in a press statement. "We also must make broad-based economic changes to have sustained economic growth and an economy that works for everyone," he stated. "We must deal with our country’s unsustainable trade deficit. We must reform our financial regulatory system to provide more transparency and government oversight and regulation. And we must pass the Employee Free Choice Act so workers can win the freedom to form unions and bargain collectively with their employers for fair wages, security and benefits."
