US jobless rates rise

US jobless claims are now at a 26 year high with the number of job losses and recruitment rates frozen as the economy slows according to the latest data released by the Labour department yesterday.

State unemployment benefits increased by 58,000 to 573,000 last week and that surpassed the 1982 levels.

Steven Wieting, a Citigroup economist has suggested that the unemployment rate is going to pass the 7 percent mark before the turn of the year, as the latest figures reveal that the though of the deepening recession in on the forefront of their minds.

Employers are cutting payrolls as consumers similarly make cut backs to ride out the recession.
As well as a lengthening unemployment list the US trade gap has also increased during October by 1.1 percent which accounts to $57.2 billion as a result of oil imports that increased as a result of a number if hurricane disasters.

The drop in exports is directly linked to the global economic downturn as demand has all but dried up with financing even harder to come by, although economic growth has been sustained mainly due to the weak dollar.

Although that lucky window of opportunity has all but disappeared as the dollar has now regained its strength alongside even weaker overseas markets.

Story link: US jobless rates rise