back to Today's Commentary
Job Woes Continue
-- October 3, 2002
The economy is teetering on the brink of another recession, and rising unemployment could be what puts it over the edge. For the sixth week in a row, new claims for jobless benefits topped 400,000, and continuing claims totaled 3.68 million for the week ended September 21.
What these numbers tell us is that companies continue to layoff employees at a fast pace, and that they're also not looking to hire anybody. That's a dangerous combination. And it will no doubt torpedo consumer confidence even more, and cause consumers to pull back on spending.
When this happens, the economy will have little chance to jump start itself -- and again will fall into recession.
New Claims For Jobless Benefits Rise