Initial jobless claims filings surged to 455,000 in the week ended August 2 from 448,000 in the prior week. That waswell above the 425,000 forecast of economists polled by Bloomberg … the highest in any week since March 2002 … andone of the highest readings going back a couple of decades.
This is yet another indicator that the economy is either already in recession or on the verge of one, in my view. Theweakening labor market is also a potential threat to the housing and credit markets. After all, when you lose your job, you have less money available to service debtand you become less willing to commit to the purchase of big-ticket items, including homes and cars.
More on this topic
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40% of Working Age Californians Jobless
(naked capitalism, 9/8/09)
Unemployment: The Harder You Look, The Uglier It Appears
(naked capitalism, 9/2/09)
Paul Krugman: U.S. Unemployment to Peak in 2011
(Shocked Investor, 9/17/09)
The Unemployment Spin: Continuing Claims Rise to 6.23 Million
(Shocked Investor, 9/17/09)
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