The number of new people filing for unemployment benefits fell to 601,000, much less than the expected 634,000. However, the rise in continuing claims to 6.35 million was registered for the week ending April 25... up from 6.30 million in the previous week and the highest tally on record dating back to 1967.
"The high level of continuing claims is a sign that many laid-off workers are having difficulty finding work." This is a quote from the linked article. What a genius. There aren't any new jobs so how are people suppose to find work! Everyone I know is waiting for a good job to open up and it's not happening. Eventually high qualified people will have to take lower paying jobs and this will result in our economy being less robust for years and years.
Even Mr. Bernanke realizes that there are going to be a lot more jobs lost in the coming months... on Tuesday he predicted "further sizable job losses" in the coming months. Companies are still laying off thousands of workers at a time. Dupont just announced they're laying off 2,000 workers. Other companies are taking every measure possible before laying people off like cutting 401k match, paycuts, and reducing travel... but this is only a temporary fix for the bottom line. Layoffs are the next step.
It is impossible for the Government to keep paying out unemployment benefits at the current rates.... State and Local Governments are already struggling financially. Even teachers are being given the pink slip in record numbers. And with unemployment remaining at record highs they're going to have a tough time paying out funds to the jobless.... next up is the State and Local government bailout. That will be a fun one. Maybe call it the SALER... State and Local Economic Relief.
Read more here.
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