Key Jobless Figure Hits 6-Year High

Nearly 500,000 New Applicants For Unemployment Benefits; Spike Worse Than Analysts Feared

(AP)  The number of newly laid off people signing up for jobless benefits last week climbed to its highest point in more than six years as companies cut back given the faltering economy.

The Labor Department reported Thursday that new applications filed for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2. The increase left claims at their highest level since late March 2002.

A program to locate people eligible for jobless benefits played a role in the increase, a Labor Department analyst said. However, the analyst couldn't say how much of a role.

The latest snapshot of layoff filings was worse than analysts expected. They were forecasting new claims to drop to around 430,000.

The data disappointed Wall Street. Stocks appeared headed for a lower opening.

The new layoff filings were distorted by the outreach program to notify people that they could qualify for additional benefits under a new law.

When people went to state claims offices to apply for these extended benefits, state officials discovered that some were eligible for - but haven't filed for - their initial unemployment benefits, the Labor Department analyst said. That accounted for some of last week's increase, he said.

Meanwhile, the four-week moving average of claims, which smoothes out weekly fluctuations, rose to 419,500 last week, the highest since mid-July 2003.

The number of people continuing to collect unemployment benefits went up by 31,000 to 3.3 million for the week ending July 26, the most recent period for which that information is available. That was the highest since early December 2003.

Among the companies announcing job cuts in late July or early August were: General Motors Corp., Weyerhaeuser Co., and Starbucks Corp. Bennigan's restaurants owned by privately held Metromedia Restaurant Group, are closing, driving more people to unemployment lines.

Squeezed by high energy prices and fallout from housing and credit troubles, employers clamped down even more on hiring in July. The nation's unemployment rate jumped to a five-year high of 5.7 percent, the government reported last week. Employers cut jobs every month so far this year, driving up losses to 463,000.

Economists expect another half million jobs to be eliminated this year alone. The jobless rate could hit 6.5 percent by the middle of next year.

The country is getting pounded by many negative forces, the Federal Reserve said Tuesday.

"Labor markets have softened further and financial markets remain under considerable stress. Tight credit conditions, the ongoing housing contraction and elevated energy prices are likely to weigh on economic growth over the next few quarters," the Fed said.

Against that backdrop, the Fed decided to leave a key interest rate steady Tuesday. The Fed can't afford to cut rates anymore because it could aggravate inflation. On the other hand, boosting rates too soon would deal a blow to the economy and the ailing housing market.

[eclecticman1]

Vote Obama so the Bush mess can be cleaned up. The lack of supervison over the mortgage industry caused this mess.

[emelder]

How do you like me now?

George W. Bush

[obama441]

The number of people continuing to collect unemployment benefits went up by 31,000 to 3.3 million for the week ending July 26, the most recent period for which that information is available. That was the highest since early December 2003.... 3.3 MILLION YAIKES!!

[obama441]

Economists expect another half million jobs to be eliminated this year alone... YAIKES!!!

[obama441]

Bush made us a free market capitalist society once again. Posted by gop_forever...REVOLUTION A''COMING

[tootall10142]

Greed is having its lunch.Desert will be bitter sweet!

[johnpatrick9]

If you vote for the damned Republican party this is what you get:UNEMPLOYMENT FOR THE AVERAGE MAN AND WOMAN AND THE RICH GETTING RICHER. The tale never changes but so many are so easily swayed by republican jingoism and prejudices and phony moral issues that they end up voting against their own economic interests. The Democratic party at least addresses the COMMON MAN while the damned republican party only cares about the wealthy and the connected. WAKE UP YOU WHO VOTED FOR THIS ***.

[element51]

gop_forever....You moron. Bush took us back to "trickle down" economics, twice, and it just doesn''t work. You don''t even know what "socialist" means. Eight years ago we had low un-employment, good jobs, reasonable gas prices, and a balanced budget. Look where this monkey has led us. You need to detach your lips from Limbaugh''s arse and learn to do a little research along with some critical thinking. Do you really want to be an idiot forever? Do yourself a favor and open your mind. Don''t listen to the talking heads as they only want to use you. And as far as your screen name goes..I would say that if the GOP was even half what they used to be you could be proud. I didn''t always agree with them but they were once a party of good people but they no longer exist since they were hi-jacked by a bunch on neo-con thugs. I do believe however, that eventually the old republican party will come back and that will be a good thing for the country.

[Gary Kempf]

Well, Isn''t that just rosy,(Sarcasam)

[johnpatrick9]

If you are a WORKING MAN and you vote for the republican party then you are an idiot and betraying yourself to your prejudices and fears. Stand up for yourself for the fat cats are just going to blow you away while spending our taxes on themselves and sending your sons out to useless wars all the while waving the flag in your face and telling you what a "good" American you are. From Hoover to Bush the wolves eat the chickens.

[mcvet-1]

zoe2006, he did that with socialism! Bush made us a free market capitalist society once again.

Posted by gop_forever at 09:49 AM : Aug 07, 2008

Is THAT what you call it? The REST of the ENTIRE world calls it FASCISM!! Sieg Heil Bush

[joker1944-2009]

What amazes me is that, even after nearly 8 years of GW Bush in the White House and 10 of the last 12 years having a GOP controlled Congress, Bill Clinton''s failed economic policies still haunt us to this day.

Sincerly, your run-of-the-mill brain-dead Republican.

[element51]

johnpatrick9...I agree with what you say. However, I do believe that what is being called republican these days has very little connection to what was republican in the past. I have always been a democrat but I do realize the need for a two party system and we used to have that. Sometimes the republicans were right and sometimes the democrats were right and sometimes we compromised. That is how it should be. But all this came to an end when Raygun took office. He opened the flood gates by de-regulating everything in sight and bringing on his trickle down economics. Once you give the foxes the key to the hen house it''s very hard to get it back. All you have to do is read a little history and you can see exactly what has happened. People scream "it''s the Arabs fault" when the reality is that all this is a direct result of de-regulation. And there is no oil shortage. We''re up to our arses in oil. If there was a shortage you would not be able to find gas. It is supply and price fixing by big oil and all the drilling in the world won''t fix it. If they do get their way and we open up everything for them to drill on I''ll wager that there will be very little new drilling.

[mcvet-1]

Every election cycle the Fascist Republican''s trot out this tired old line... we all know it by heart so let''s repeat it together! "We will cut Taxes for Corporations and the Rich, they will invest that money creating more jobs and it will Trickle down to all you working stiffs. We then will cut spending, can''t tell you where and we will balance the Budget"! Now so far there is ONLY ONE part of that whole line that has been done. They have cut the taxes of the rich. The rest of it is the same tired old lie they''ve told us for 3 decades. ANYONE voting for more of the same LIE is simply out of their minds!! Sieg Heil McBush

[jmurrieta1]

Eight years of Republican / Neocon / Bushite incompetence and corruption are finally coming home to root.

As Bush, Cheney, and their cronies / puppeteers line their pockets with taxpayer money, the average American is sucking hind teat.

"Punk" McCain would be 4 more years of theft and "know-nothing"-ism.

[johnpatrick9]

ELEMENT51; Yes this manifestation is not the ideal of the REPUBLICAN Party but the ideology has gone toooo far to the Right to the point of being FASCIST. Bring back an EISENHOWER and you may then regain the currently lost respectability and outright criminality and treasonous behavior of these yahoos. Thanks.

[williamfold]

Mission Accomplished!

[stevex47]

Ha, is this comment frightening or what?

"zoe2006, he did that with socialism! Bush made us a free market capitalist society once again.

Posted by gop_forever at 09:49 AM : Aug 07, 2008"

There is somebody, so drunk on the reich wing kool aid, who actually believes this stuff. People loved Hitler too, go figure.

[omega39-2009]

The Labor Department reported Thursday that new applications filed for unemployment insurance rose by a seasonally adjusted 7,000 to 455,000 for the week ending Aug. 2. The increase left claims at their highest level since late March 2002.

So much for the stimulus package!!

[element51]

gop_forever...You poor deluded fool. You are actually saying that all this mess we are in is because Clinton got impeached for a blowe-job? Where were you when all that was taking place? It was a witch hunt of monumental porportions with millions of dollars spent over nothing. Clinton was stupid. That was his main offence. No one died as a result of his stupidity but thousands have died as a result of Bush''s moronic actions. The republican congress had little to do with the economic conditions during Clinton''s term. But it could have been a nightmare if he had done what Bush has done. My God man, you are a real piece of work.

[omega39-2009]

The Republican program "No US job left behind", is a rousing success!

[Mccarthyaw]

GOP_forever is essentially the Stephen Colbert of these forums.

[omega39-2009]

omega39 - and the idiot dems want ANOTHER one. Got any other bright ideas, SanFranNan?

Posted by ritewingman

Yeah, stop giving tax breaks to companies that offshore their jobs!!!

[omega39-2009]

GOP_forever is essentially the Stephen Colbert of these forums.

Posted by mccarthy51

I thought so too, many just don''t seem to "get" the humor.

[element51]

ritewingman...Thank you for putting my fears to rest. I was starting to think that the job market was a little thin. I know in our area there are pleanty of jobs available in the 6 to 9 dollar range which will more than quallify those workers to get into one of those new houses you speak of. We just had another 500 people dumped on the jobless market due to a plant closing this week. Maybe some of them can get jobs building those new homes. Everyone I talk to is coming up short each month but I will relay to them the good news you have posted. I guess they need to stop whining and get a second job. Wasn''t it one of your guys who said that Americans are just a bunch of whiners? That nasty old left wing media just can''t get it right, can they?

[tiptop101]

I don''t get it. I see literally millions of jobs listed on sites like MadeInAmericaJobs.com, monster, CareerSitesCompany.com. How anyone is unemployed is beyond me. It''s a lack of trying. Too easy to be an idiot in the country when you rob from the productive to give to the leaches, who then are lazy idiots. Most of that is due to the folks who don''t get it..aka democrats. Republicans are just as bad, but democrats are well beyond them. Pick up a Ayn Rand book and clear your stupidity.

[element51]

tip-top101...I get what you are saying but last Sunday there were about a half page of jobs in the help wanted section. I live in a town with roughly 160 thousand population. And most of those jobs were selling time shares or vacation packages. As for the jobs listed on the sites you listed, I don''t know what they are looking for. If they are high tech jobs or jobs that require at least a BA then the majority of the population is excluded. Not everyone has the training or quallifications for those types of jobs. What is in short supply are jobs that a person with a high school education or a couple of years of tech school can quallify for. And based on what I have learned from people who I know that are in their 50''s to 60''s there is difinately a problem with their age. I could cite some specific examples but I trust you will take my word. I have many democrat friends and I can assure you that they are not lazy people who just want a free ride. They want to work. To paint all democrats with the same bruse is as bad as painting all republicans with the same brush. There is good and bad everywhere. I think democrats who are milking the system are no better than the multi-millionaires who are hiding money in foreign banks and not paying a penny of tax. They are both ripping off the system. Don''t you agree?

[element51]

ritewingman...I''m glad to hear that jobs are being created. I''m lucky. I worked hard and invested well and am retired with a rather nice income. But for folks who are still working it''s tough out there. There are pockets in the US where things are going well but there are also lots of areas where it is pretty dismal. Pernonally, I don''t think Obama or McCain can solve the problems but one of them is going to get a shot at it. I hope that whoever it is can step up and do some good. I''ll support whoever is elected until he gives me reason not to. But life goes on either way.

[pirmin3]

Bushie "Doh! My bad" NOT!!!!

[tootall10142]

GREED IS HAVING ITS LUNCH,DESERT WILL BE BITTER SWEET.HOWS THAT CREDIT CARD THING WORKING OUT FOR THESE GREEDY PEOPLE THAT LIVED BEYOND THIER INCOME AND THE TRICKLE DOWN TOOK THIER JOB .REALITY HAS NO SYMPATHY FOR THE WEAK AND GREEDY.THE MILITARY NEEDS BULLET STOPPERS AND THE LINE IS SHORT.

[ubrew12]

Three-fourths (75%) of the economic growth during the Bush administration has gone to the wealthiest 1% of Americans, according to the Economist Magazine (which is hardly a liberal rag).

While the poorest 99% of Americans saw income increases of 1% a year (between 2002 and 2006), the wealthiest 1% of Americans saw income increases of 11% a year over the same time period.

Poor white males vote Republican because its conservative ethic is one they believe in. But, what works at the personal level doesn''t apply to the community at large: government by conservatives is too often government by anarchists: they apply their ''individualism'' to looting the treasury, destroying gov''t institutions, handing out favors that will eventually result in huge personal paybacks, etc, etc. That''s what the Bush admin has done to America, and its resulted in huge increases in poverty. Even though conservatism is a good personal ethic, its a horrible way to run a gov''t, as we''re seeing.

[excoachken]

How about 4 more years of this with McBush?

[rwassel]

Don''t worry!

John "I don''t know as much about the economy as I should" McCain will save the day!

He''s almost halfway done with Greenspan''s book!

[antoniof123]

Another day in paridise too bad all of this effort goes into arguments instead of working together and finding the best solution and that is a mix of both not just one side.

[credibility2]

Businesses are reluctant to hire or create new jobs because they have to cut their losses in order to get any type of profit for their business and investor and one way to do this is not to expand their employee base. Any candidate advocating raising taxes on businesses, are in for a rude awakening, since that generally translates to fewer jobs being created, potentially exacerbating the unemployment rate, and businesses that will just pass along the tax increases to the consumer, including food and fuel costs.

[walt1944-2009]

It has been learned that recently "Bagdad John McBush (SURRRRRGE, DRRRRILLLL)"McCain is "grudgingly" admitting that citizens of the USSA are ACTUALLY WORSE off than they were 4 years ago! This, despite a statement by "DRRRRILLLL" McCain in January that citizens of the USSA have NEVER HAD IT SO GOOD under the reign of the Great Emperor Bush II!!!!

McCain, however, was at a loss as to how to improve things for the average citizen, especially since his "top" economic advisor, "Dr. Phil" Gramm, was shoved off the campaign several weeks ago for calling the current recession/depression "IMAGINERY" and the average citizen "WHINERS"!

With no one to advise him about what to do economically, "DRRRRILLLLLL" McCain can only think that DRRRRILLLLING for oil in everyone''s back yard will solve everything, including bring down the price of gasoline (a whopping 2 cents within the next 20 years!), create jobs (I always wanted to be an oil rigger!), free us from foreign oil (by bringing the Middle East HERE, complete with sand and dust!), and protect the "environment" (Exxon/Mobil''s financial "ENVIRONMENT!)!

Under McCain''s program, who needs wind and solar when everyone will have their own oil rig in their back yard?????? (Owned by Exxon/Mobil, of course!)!

SIG HEIL, BUSH!!!!!!
sig heil, "DRRRRRIILLLLL", McCain!!!!

[sistatee-2009]

The 7-yr olds in China and India are fully employed. What else matters? Thanks McCain AND Obama for supporting NAFTA. Stick a fork into the United States, it''s finished.

[checkthepast]

nobody was unemployed under any other presidents?

Posted by jamesm12341

That''s what they would like to pretend James, (''they'' being those sore losers that refuse to support our elected officials unless their losers win!)

Actually except for 1965-70 and 1997-99 our unemployment rate is still the lowest it has been in the past 50 years.
(But whiners only know how to whine... Finger pointing name callers with no solutions to anything.

[redbds]

The 7-yr olds in China and India are fully employed. What else matters? Thanks McCain AND Obama for supporting NAFTA. Stick a fork into the United States, it''''s finished.

Posted by SistaTee at 01:58 PM : Aug 07, 2008

Unemployment in the US is actually lower since NAFTA was passed. And by the way NAFTA has nothing to do with China or India. If you want to make a point about an issue at least take the tiem to educate yourself. That way you won''t look like an idiot.

[rwassel]

Don''t worry!

John "I don''t know as much about the economy as I should" McCain will save the day!

He''s almost halfway done with Greenspan''s book!

[rwassel]

checkthepast -

You should probably do what your screen name says.

The unemployment rate was at 6.9% when Clinton took office in 1993. The rate fell steadily to 4.0% until the end of 2000, shortly before George Bush took office. Now it has climbed back to 5.7%

Not only will our current president leave us with a deficit instead of a surplus like Clinton, he will also leave us with the worst unemployment since his daddy.

[talkingham]

Clinton raised taxes on the people who could most afford the raise and the economy boomed - Der Decider has done exactly what he and the Neocons wanted and destroyed our economy. Neocons thrive on fear and strife and that is exactly what they have produced and continue to pursue.

[wpiv926]

The Republican recession grinds on!!!!! Why don''t they just abolish the GOP???? They have been such horrible stewards of the economy and our government, they don''t deserve to even exist anymore in my view.

[libsluv2spit]

The Republican recession grinds on!!!!! Why don''''t they just abolish the GOP???? They have been such horrible stewards of the economy and our government, they don''''t deserve to even exist anymore in my view.


--------------------------------------------------------------------------------

Posted by wpiv926 at 04:06 PM : Aug 07, 2008
+ report abuse

**************

a democrat''s answer to this recession is more taxes on businesses..do you know the reprecussions of that??

let me know when you cannot find a decent job stateside..

[libsluv2spit]

The 7-yr olds in China and India are fully employed. What else matters? Thanks McCain AND Obama for supporting NAFTA. Stick a fork into the United States, it''''s finished.


--------------------------------------------------------------------------------

Posted by SistaTee at 01:58 PM : Aug 07, 2008
+ report abuse

******************

after all those imposed business burdens the liberals and the democrats had imposed on american companies..they rather give it to "7 year old" in china and india..

[n_cognito22]

-after all those imposed business burdens the liberals and the democrats had imposed on american companies..they rather give it to "7 year old" in china and india..
Posted by libsluv2spit at 04:44 PM : Aug 07, 2008

Nahhh, its all those big tax breaks the republicons give to the giant corporations to locate operations overseas to countries that pay less than slave wages.
Tell everybody here how you can live on $2.00 a day if you even have a job to begin with. Come January 2009 the only spitting you''ll be doing is when you are shining the shoes of President Barack Hussein Obama.

[lovegetpeace]

Bravo to the Massive Bush''s Tax Cuts of 2001 and 2003. Shall we have another one? China is ready with the cash to loan us.

[lovegetpeace]

Posted by libsluv2spit at 04:44 PM : Aug 07, 2008

Capitalism works best under Communism where workers have almost no rights and under the firm control (regulation) of a Central Government.

See China, Russia and Vietnam as Awesome Examples.

[lovegetpeace]

Posted by libsluv2spit at 04:42 PM : Aug 07, 2008

What jobs? Are you talking about the Outsourcing and Insourcing (H1B Visa) of High-Pay, High-Tech Professional jobs by American Corporations?

[lovegetpeace]

Posted by libsluv2spit at 04:44 PM : Aug 07, 2008

NAFTA got nothing to do with Oursourcing and Insourcing (H1B Visas) of American Profesional jobs to India and China. You can completely kill NAFTA and these jobs will still be lost.