Economy Alarm: Jobless Recovery Drags On…

Jobless Recovery Drags On…

Layoffs Continue and Jobs Remain Scarce as Democrats’ Empty Promises Become Harder to Fulfill

Democrats Claim the Stimulus ‘Saved or Created’ Up to 2 Million Jobs Last Year and Promise to Reach 3.5 Million Jobs By the End of 2010

“The Obama administration, offering evidence that its much-maligned efforts to spur economic recovery have begun to take hold, said Tuesday that the $787-billion stimulus program saved or created 1.5 million to 2 million jobs last year… [Chairwoman of the White House Council of Economic Advisors Christina Romer] expressed confidence that the package of tax cuts and government spending — the largest of its kind in U.S. history — ultimately would fulfill President Obama’s promise of boosting employment by 3.5 million jobs by the end of this year.”  (Don Lee and Jim Tankersley, “White House credits stimulus,” The Los Angeles Times, 1/13/2010)

Credibility Crash: First-time Jobless Claims Unexpectedly Rise, the Day Before Unemployment Rate Report is Forecast to Increase

The number of newly laid-off workers filing initial claims for jobless benefits rose unexpectedly last week, evidence that layoffs are continuing and jobs remain scarce.

The rise is the fourth in the past five weeks. Most economists hoped that claims would resume a downward trend that was evident in the fall and early winter.

The Labor Department said Thursday that new claims for unemployment insurance rose by 8,000 to a seasonally adjusted 480,000. Wall Street economists had expected a drop to 460,000, according to Thomson Reuters.

The four-week average, which smooths fluctuations, rose for the third straight week to 468,750.

The figure is the highest in the past two months. Initial claims dropped sharply in late December, raising hopes among economists that layoffs were nearing an end and the economy would soon start generating net gains in jobs.

The figures come a day before the Labor Department is scheduled to report the January employment figures, which are expected to show a tiny gain in jobs. The unemployment rate is forecast to rise to 10.1 percent.

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Still, the increasing number of people claiming extended unemployment insurance indicates hiring hasn’t picked up. That leaves people out of work for longer and longer periods of time.

Some employers are continuing to cut jobs. Wal-Mart Stores Inc. said Wednesday that it will eliminate 300 administrative jobs at its headquarters. The company has cut almost 14,000 jobs in the past 13 months, including 11,200 positions at its Sam’s Club stores.

Sony Pictures Entertainment Inc., a unit of Japan’s Sony Corp., said Tuesday it is laying off 450 people and eliminating 100 open positions.

Among the states, Oregon reported the largest increase in claims, with 4,336. Puerto Rico and Hawaii also reported increases… (Christopher S. Rugaber, “First-time jobless claims rise unexpectedly,” Associated Press, 2/4/2010)

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