The New Normal: A Jobless Recovery?
July 12, 2010 — -- New applications for jobless benefits rose to the highest level in nearly six months, painting a picture of an economic recovery slowing to a halt and raising fears of a double dip recession.
The number was eye-opening and unexpected. Economists had actually predicted that the number of Americans filing new unemployment claims would actually fall. They were wrong.
The number of American workers filing new unemployment claims jumped to 484,000, the highest total since February.
"Any way the data is cut, the numbers are dismal for unemployment," Diane Swonk, chief economist for Mesirow Financial, said.
Initial claims have risen three of the last four weeks and are close to matching their highest point reached in late January of 490,000. An economy with healthy hiring typically has claims under 400,000.
With more than 14 million Americans looking for work, 25 million people if you count those who've given up, the economic domino effect is clear.
"This confirms, unfortunately, our reality, and that is that not only is the recovery growing at a subpar pace but actually losing momentum and this is something that you really worry about when you don't have much momentum to begin with," Swonk said.
