4-23-09, 9:32 am
As steam from President Obama's economic stimulus plan builds in the states and localities and new investments in infrastructure and job-saving programs start to flow, do the latest data from the Department of Labor suggest that the dismal unemployment situation may be turning a corner?
According to statistics released today, April 23, initial jobless claims for unemployment benefits for the week ending April 18 increased over the previous week by 27,000 to 640,000. This means that 640,000 newly laid-off people filed for unemployment benefits during that week. This week's losses reversed a mini-trend over the past two weeks where initial claims fell by more than 70,000. Still, the moving four-week average is down by about 4,500, the DOL reported.
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.
After two straight weeks leading the country in rising initial claims for unemployment benefits, Michigan saw the total number of claims fall by over 12,000 as the automakers and related industries laid-off fewer workers, according to reporting from the state. North Carolina, Missouri, Kentucky and Oregon saw fewer claims as well, as construction and manufacturing businesses retained more workers.
Florida, Pennsylvania and California saw big jumps in initial claims, however. Layoffs in construction, manufacturing and service industries led the way.
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, railways and airports slated for the next few weeks and months, along with new financing for public schools, environmental clean-up projects and federal parks and buildings renovations is expected to create or save thousands of jobs.
Last week the Obama administration announced the approval of the 2,000th infrastructure project, but so far no estimates have been given for how many of these projects have already begun. The Department of Transportation estimates that most will get into full swing by the summer.
The worsening jobs picture prompted the AFL-CIO earlier this month 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 data 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. Further, while the newest numbers suggest a downward move in unemployment claims, the numbers of newly unemployed people remain alarmingly high.
A new report from the International Monetary Fund this week revealed a global economic collapse without much hope for a speedy recovery. New signs in the housing market suggest that the troubles that sparked the financial crisis and the economic downturn have not yet been resolved.
