Economy Alarm: Jobless Recovery Drags On With No End in Sight
Layoffs Increase and Hiring Slows as Democrats’ Empty Stimulus 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: Jobless Claims Rise Sharply, Slowing the Pace of Economic Recovery
The number of people filing new claims for jobless benefits jumped last week after three straight declines, another sign that the pace of layoffs has not slowed.
Initial claims for jobless benefits rose by 12,000 to a seasonally adjusted 472,000, the Labor Department said Thursday. It was the highest level in a month.
First-time jobless claims have hovered near 450,000 since the beginning of the year after falling steadily in the second half of 2009. That has raised concerns that hiring is lackluster and could slow the recovery.
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Just this week, casino owner Wynn Resorts laid off more than 260 workers in its two Las Vegas casino hotels in a move expected to save nearly $8 million.
The number of people continuing to claim benefits rose by 88,000 to 4.57 million. That doesn’t include about 5.2 million people who receive extended benefits paid for by the federal government.
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Congress has added 73 weeks of extra benefits on top of the 26 weeks typically provided by states. All told, about 9.7 million people received unemployment insurance in the week ending May 29, the most recent data available.
The extended benefit program expired this month. Congress is debating whether to continue it through the end of November.
Adding to worries about the job market, the Labor Department said earlier this month that the economy generated only 41,000 private-sector jobs in May. That was down from 218,000 in April. (Alan Zibel, “New claims for jobless benefits rise sharply,” Associated Press, 6/17/2010)
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