As reported in Bloomberg

 

July 10 (Bloomberg) — The number of Americans collecting unemployment benefits climbed to the highest level since December 2003, reflecting a deteriorating job market that threatens to hurt consumer spending.

 

The total number of people collecting benefits rose 91,000 to 3.202 million for the week ended June 28, the Labor Department said today in Washington. First-time jobless claims fell more than forecast in the week ending July 5 to 346,000, a figure distorted by annual July shutdowns at auto plants.

 

Rising unemployment will contribute to the weakest gain in consumer spending since 1991 by the final three months of the year, according to a monthly survey of economists by Bloomberg News. Starbucks Corp., the world’s biggest coffee-shop chain, and IndyMac Bancorp Inc., a lender hurt by the mortgage collapse, are among companies announcing job cuts this month.

 

“The important thing here is the continuing rise in continuing claims,” said Russell Price, senior economist at H&R Block Financial Advisors Inc. in Detroit. “It shows a pattern that the labor market continues to deteriorate, and the people laid off are certainly having a difficult time finding employment.”

Our Perspective:

The fragile economy continues to play havoc with the job market. Uncertainty rules. What is being done to look forward, get the economy and job market moving again? This is a discussion that is needed.

Sore subject

I am not trying to be controversial, in the past the government instituted workfare programs designed to rebuild our infrastructure. Our infrastructure is falling apart and steps must be taken to improve and modernize them. Could workfare provide an avenue? This would improve the quality of life thruout the US and also get the masses back to work. 

This is only one idea, I am sure there are many mre that can be brought forward to keep America moving.

Let us know your thoughts?

You may email george@hbsadvantage.com