Although, weekly claims for unemployment insurance went down in USA, but, ongoing claims increases to 7 million. The Labor Dept reports that new claims for jobless benefit dropped to 631,000, down from 643,000 the previous week. The dept further reported that continuing claims increases from 6.6 million to 6.7 million. This is the highest total record since 1967. The projection is that labor market will remain weak in 2010 and beyond that.
Although, the number of claims declined early of this month, but, the latest auto layoffs further fueled the situation further. Fed Reserve anticipates that the economy may grow again by the end of this year. Fed officials expect the unemployment rate, currently at 8.9 percent, may go up to 9.6 percent this year and further worsens until 2011.
More job cut has been announced this week. American Express is going to lay off 4000 employees. Hewlwtt-Packard announced to cut 6400 jobs. Among all of the states, Michigan has the highest increase in claims and California recorded biggest decrease in claims.