The number of newly laid off workers filing claims for unemployment benefits shot up last week by the biggest amount in four months.The housing slump is just starting and as projects already underway are finished the unemployment numbers in the construction industry could rise.
The Labor Department reported a total of 317,000 applications for unemployment benefits last week, an increase of 16,000 from the previous week. It was the biggest gain since jobless claims rose 18,000 during the week of May 9.
The rise was bigger than analysts had expected and could be a further sign that the labor market is slowing under the impact of the worst slump in housing in 16 years and a severe credit crunch that roiled global markets in August.
What we are experiencing is the beginning of a recession as a result of horrible economic policies that have decimated the value of the dollar, killed our middle class and put five million additional people into poverty. The redistribution of wealth that has occurred since the 1980's has come home to roost. With negative savings rates not seen since the depression, how are people supposed to weather the storm? The answer is most can not afford any layoff and with the potential of even more in the coming months the pain being felt by many American families will only grow. It is time for sensible economic policies that benefit everyone not just those at the upper echelons of society.