Unemployment Rate Indicates Weak Economy

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Despite claims that the number of people who filed for unemployment benefits has dropped significantly last week, the large number of jobless, reaching to 7 million, still signify that the economy is still in its weak point and showing that it will continue to do so until late 2010.

A new data released by the US Labor Department showed that more than 7 million Americans have filed for jobless benefits, adding that the number of people piling up for the claims have dip below the 600,000 mark.

It was the first time that it reached below projection since January this year.

But even with the decrease of job loss benefits claims, the Labor Department said that the economy remains volatile and weak, adding that job opportunities are scarce.

Based on Labor records, the number of people who filed unemployment insurance decreased by more than 52, 000. The seasonal average was 565,000.

While the week insurance claims still averages at around 300,000 to 350,000. But despite the huge number of unemployed, analysts said that the figure is consistent with the figures of a healthy economy. They also said that the drop in the figures was dependent on the timing of some auto-related layoffs which registered as a slowing down in the unemployment rate.

Analysts also said that the steep drop in the number of jobless will continue for the following months and will further added up to the people who were asking for unemployment benefits from the government.

Economists’ projection of the unemployment rate showed that it may not be able to break away from the 350, 000 a month rate until middle of 2010.

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Unemployment Rate Indicates Weak Economy

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