Applications for Unemployment Benefits Rose Sharply ... - Bankruptcy

The number of U.S. citizens asking for unemployment benefits rose significantly last week, although the rise may have been aided by seasonal factors, according to a report from USA Today.

Last week, applications for unemployment aid rose by 8,000 to a total of 365,000, according to a Labor Department report. The four-week average, however, fell to 365,500, which is the lowest mark since the end of March.

Despite the drop in the four-week average, however, last week?s unemployment figures portrayed an economy that still remains perilous for job seekers.

Rise Unemployment Benefits Reflects Stagnant Economy

While national filings for personal bankruptcy have been on the decline, as consumers tighten their grip on their wallets, the employment figures continue to make economists concerned.

In the first three months of 2012, the country added an average of 226,000 jobs in the private and public sectors, which made economists cautiously optimistic that a full economic recovery was on the horizon.

However, from April to June, the workplace only added an average of 75,000 new jobs. This figure is nothing to sneeze at, but it certainly reflects a significant slowdown in the creation of new jobs.

In July, sources estimate that employers added about 100,000 new jobs, which is a sign of some progress, but it wouldn?t shift the employment rate from its current position at 8.2 percent.

Unemployment Rate Remains Stuck in Neutral

Sources indicate that the economy simply isn?t growing fast enough to lower the unemployment rate. Thus, while the economy continues to add some jobs, it cannot keep pace with the number of new workers entering the job market every month.

And the dismal economic news extends beyond the job market. Sources say that orders to factories fell by a half of a percent last month, which was the third such decline in the last four months.

In addition to the declining factory activity, orders for ?core capital goods,? which is considered a reliable indicator for business investment, dropped by 1.7 percent. Much of this decline was due to decreased demand for computers and heavy machinery.

The manufacturing figures are especially troubling because, since the recession officially ended in the summer of 2009, the manufacturing sector has been an important source of growth for the American economy.

So, the drop in factory orders, combined with the modest employment figures, suggests that the economy might not pick up speed for several months, which could make for a very interesting election cycle this fall.

Source: http://www.clearbankruptcy.com/blog/applications-for-unemployment-benefits-rose-sharply-last-month/

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