New Unemployment Claims at 2 Year Low

Unemployment Numbers Down

This week the U.S. Department of Labor released a report indicating that new unemployment claims were about 388,000 for the week ending on the 25^th of this month.  This was the first time the numbers had been below the 400,000 mark in just over 2 years.

While the reduction in new claims looks encouraging, a drop of over 100,000 since just six months ago, it is important to remember that the new numbers only add to the over 9 million individuals already reportedly receiving unemployment benefits. According to the report, the majority of these 9 million are currently receiving extended benefits as they have been unemployed for more than the six months which standard benefits cover, and at which point unemployment benefits usually run out.

The numbers may be skewed slightly, however, as many of the recently unemployed may not have been eligible to file a claim. Because the economy,  and the resulting unemployment, has been in trouble for such an extended period of time, many who may have obtained a new job after being laid off, may not have worked the new job long enough to qualify for benefits before being laid off again.