Jobless Claims Rise Highlights Economy's Ills

New reports have come out that jobless claims increased again last week. The news come just days after the Federal Reserve lowered their expectations for the economy. All of this new information has experts worried about the economic recovery.

Reuters reports:

The number of U.S. workers filing new claims for jobless benefits unexpectedly rose last week to the highest level in close to six months, the latest evidence the economy's recovery is faltering.

Thursday's data came two days after the Federal Reserve spooked investors by downgrading its assessment of the economy. The increase in jobless claims added to worries in the stock market, which has failed to make any gains this year.

The number of new claims for state unemployment insurance rose by 2,000 to 484,000 in the week ended August 7, the second straight increase, the Labor Department said. Economists had expected claims to edge down to 469,000.

"This is not a good number," said John Brady, an analyst at MF Global in Chicago. "Claims are going the wrong way. That has the market concerned."

U.S. stocks closed down for a third straight day, pressured by the data and a disappointing revenue forecast from tech bellwether Cisco Systems Inc (CSCO.O).

Read more here

No Job For Years and Still Looking

From CNN Money.com:

John Miller wasn't too nervous when he lost his job in the mortgage industry in June 2008.

The worst of the financial crisis was still months away. While the subprime mortgage industry had already imploded, there was still a debate at the time whether a recession had started. Job losses were steady but not dramatic.

Miller lost his job when Deutsche Bank shut down a unit making government-guaranteed FHA loans, but he had found work in the past when an employer had closed a unit. He thought that even if it took a few months to find another job, something would turn up.

Almost two years later, he's still looking.

"It's unfathomable to me," said Miller. "Never in my wildest dreams did I think I'd be coming up on two years without a job."

Miller is exhibit A of why this economic downturn feels so much worse to most than any other since the Great Depression. Long-term unemployment is at a level that dwarfs anything since the government started tracking the problem shortly after World War II.

California Jobless Rate Swells to 12.6 Percent

It is no secret that my home state of California has had a rising unemployment rate. Therefore, it should come as no surprise that the number of Californians without jobs increased last month to 12.6%. The state Employment Development Department made the announcement last Friday.

California's jobless rate grew from 12.5 percent in February after holding steady for a month. The rate was 10.6 percent in March 2009.

Howard Roth, Chief Economist for the State Department of Finance, said the unemployment rate appears to be at or near its peak.

It was the first time since mid-2007 that the state saw job gains for three consecutive months. The department previously had reported a job loss in February, but revised those numbers Friday based on new data.

"I think this is for real," Roth said of the economic rebound. "We're seeing it in other statistics as well, personal income, taxable sales and housing prices."