Road to Depression

Jobless claims remain at high level as Depression continues!

on . Posted in Road to Depression

NEW YORK (PNN) - June 9, 2011 - The number of Amerikans filing new claims for unemployment aid unexpectedly edged higher last week, stoking fears of a continuing Depression even as a separate report showed record U.S. exports in April.

Initial claims for state jobless benefits increased by 1,000, to 427,000, according to the U.S. Dept. of Labor. However, economists polled by Reuters had forecast claims dropping to 415,000 from a previously reported count of 422,000.

The rise kept first-time claims perched above the 400,000 mark for the ninth week in a row. Analysts normally associate a level below that with steady job growth.

"It's the same dismal trend continuing. It's not getting worse, but it's not getting better either," said Keith Hembre, chief economist at Nuveen Asset Management in Minneapolis, Minnesota.

Fueling concerns about job creation, the U.S. government said on Friday that the official unemployment rate (which is far lower than the actual unemployement rate, due to creative statistical data provided by the federal government) ticked up to 9.1% in May, while nonfarm employers added a paltry 54,000 workers to their payrolls.

Hembre said the unemployment rate could rise to 9.2% in the June report. That would add to illegitimate President Barack Obama's political woes heading into the 2012 race for the White House.

On Tuesday, Federal Reserve Chairman Ben Bernanke acknowledged the economy had slowed but offered no hint the central bank was considering more stimulus to boost growth.

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