So far the United States has recorded a record-high number of jobless claims in September. Most recently we reported on how the claims had been surging as Americans continue to grapple with the largest numbers of people unemployed or underemployed in American history.
In the same report we reported that more than three million additional jobs were lost in the Great Recession than was previously realized, and this was after a decade long rebuilding effort. But, that is not all that we found. As we noted:
After 3.5 million jobs were lost in the recession, we also learned that since September 2020, we are now averaging nearly seven hundred thousand new jobless claims per week. This trend of rising claims continues to impress economists.
“We’re seeing a lot of evidence that the cyclicality is back and continuing,” said Eric Green, chief economist for the Atlanta Federal Reserve Bank. “I would expect the monthly claims to be in the seven hundred thousand range through the end of the year.”
The following chart from Zero Hedge explains why more than three million jobs have been lost during the initial stages of the recession and continues to climb. As we mentioned in our previous reports, the figure is now approaching five million – a loss of ten percent of all the jobs lost during the first three years of the Great Recession.
Moreover, if we want to understand the effects of the two most significant factors behind jobless claims – the banking crisis and the current sub-prime mortgage crisis – we have to look at the actual figures. As we noted:
“Now, it may seem odd to me that we’re in this kind of condition right now given all the optimism that’s buzz about in the media lately, but let’s be honest, this is no time to be cynical,” said economist Jonathan A. Salinger of the University of California at Davis. “There is no doubt that there will be some inflationary pressures associated with this situation. That said, the bottom line is that the problems we’re seeing in terms of joblessness are not severe, but they are real and they will eventually manifest themselves in some kind of inflationary pressure on our economy.”
“The last few years have not been particularly good to us as a country, so we shouldn’t celebrate too much when we get in front of this crisis, but we should continue to move forward in the wake of this financial crisis,” Salinger added. “The progress we’ve made over the last couple of years is good, but we need to continue to push ourselves forward and that means we should continue to have more budget deficits.
“If you look at the next quarter and the next couple of quarters and then the next few years, then we have a long way to go if we want to recover all the jobs lost during the financial crisis,” Salinger continued. “Right now we’ve got to do better and we should get started now.”
As we previously noted, the United States has seen one of the worst recessions and recoveries in modern history, and many are still suffering from the effects of unemployment. As we also noted:
At this point, it is important to note that jobless claims are an imperfect measure of the broader measure of unemployment. But it is our hope that looking atjobless claims, even at these historically high levels, will help highlight the fact that there is a real problem within the economy and that things are definitely not getting better for the American people.
Indeed, as Zero Hedge reports, the Federal Reserve Bank of New York has recently released an advisory which states: