In a major milestone announcement today, the US Department of Labor revealed that the number of US workers claiming unemployment rose to 407,000 from the previous week, its highest level since Hurricane Katrina in September 2005. The number of people collecting unemployment insurance reached its highest level since July 2004.
More shocking than just the increase is sheer number is the amount by which this figure surpassed economists’ expectations: over 40,000 more Americans are reporting joblessness this week than anticipated. The national monthly unemployment report, which is released tomorrow, is expected to be equally as dismal with an estimated decline of 50,000 American jobs.
Weekly Jobless Claims, via The Capital Spectator:
Reverberating throughout the American economy, this announcement had immediate impact on the strength of the US Dollar, stock index futures, and the increasingly prevalent suspicion that the US is approaching recession.
Less than 24 hours after the Chairman of both the Federal Reserve and US Treasury articulated their pessimistic outlook on the 2008 economy, these numbers unfortunately are simply an indication of what’s to come.