“JOBLESS BENEFITS MARK 25-YEAR HIGH”
The number of people receiving unemployment benefits has set another record – a development likely to weigh on consumer spending and slow the economy’s recovery. (I tell you one person who’s NOT getting any benefits AT ALL – ME! I didn’t even get any stimulus funds! And I’ve been unemployed for 7 years! )
While retail sales rose in May, the increase resulted largely from a spike in gasoline prices and higher auto sales – according to a report from the Commerce Department. Overall, the retail report Thursday showed consumers remain reluctant to spend, economists said.
“The jobs picture continues to be one of the most significant challenges to the economy,” said Dean Curnutt, president of Marco Risks Advisors, a financial strategy firm. “It’s very difficult to be bullish on consumer spending when you’re looking at unemployment rates that are so high.”
The number of people continuing to claim benefits exceeded 6.8 million in the week ending May 30th, the Labor Department said Thursday. That was the 19th straight weekly record – after a drop last week was revised to an increase.
And that doesn’t include about 2.4 million people receiving benefits through federal and state extended programs – which can add up to 53 weeks to the 26 weeks provided by most states. That means about 8.5 million received unemployment insurance in the week ending May 23rd – the latest data available – which is triple the total of a year ago. (Funny, I thought that 6.8 and 2.4 added up to 9.2 – guess I can’t add.)
The unemployment rate jumped to 9.4% in May – a 25-year high – as employers cut 345,000 jobs. Some economists predict the rate could near 11% by the middle of next year.
More encouraging was a drop in initial jobless claims to a seasonally-adjusted 601,000 last week – which was below analysts’ expectations - and the lowest since January.
New jobless claims are a measure of the pace of layoffs and are seen as a timely – if volatile – indicator of the economy’s health.

-from an Associated Press wire release as printed in the Martinsville (VA) Bulletin Friday, June 12th.

(Parantheses and italics – and words in BOLD highlights – are mine.)