US Jobless Claims Continue to Climb .

Friday, 16 September 2011 09:56 Newsroom . .

In another indication that the US economy may be in trouble, jobless claims jumped last week to the highest level seen in three months. This is hard evidence that the job market is depressed.
According to data released by the US Labor Department said Thursday that weekly applications increased last week 11,000 to a seasonally adjusted 428,000- and this reflects a week that included the Labour Day holiday. Also for the fourth consecutive week, the four week average increased, registering in at 419,500.

What may be a little disturbing about this is that typically short weeks mean a reduction in unemployment claims, but this past week bucked that trend- suggesting that there may indeed be trouble of a serious economic kind brewing south of the border. Also, these unemployment applications are widely considered by many to be a barometer of layoff activity.
The magic number to demonstrate that hiring is outpacing the unemployment mark is 375,000- which continues to be elusive. In fact, claims have not been below that level since February, indicating that this is not a blip on the map.

Compounding things, there was net zero job growth in the US in August, which unfortunately, represents the worst figure seen in almost a year, and the unemployment rate continues to hold at a high 9.1% for the second month in a row.

What may be the most staggering August statistic though is businesses only added 17,000 jobs- which is a remarkable plunge from the 156,000 added the month prior.

Beyond the numbers though, is what this means- bottom line for the US economy, and many analysts are worried that there is a concerning trend emerging here. Amidst talk of a double-dip recession, a frail US economy is in desperate need of job creation to pull itself out of the chasm and away from the brink.