Mixed Unemployment, Hiring, and Jobless Claims for July

  • Unemployment INCREASED in July to 8.3% from June 8.2%
    • This tracks those who are without jobs, and have actively sought work within the past 4 weeks. The Great Recession’s unemployment peaked at 10.10% in October 2010. In 2012 it has varied in the range of 8.10% – 8.30%. This statistic does not track all people who are not working, but are not too young or old, some websites report that the real unemployment rate is about 16%, which is probably more realistic. During the Great Depression it peaked at about 25% in 1933.
  • Monthly change in non-farm payrolls: 163,000 new jobs for July an INCREASE from when in June we saw new jobs 64,000 added.
  • Jobless Claims for Unemployment Insurance: DECREASE from 367,750 to 365,500 4 week rolling average. July 28th they were 365,000, an INCREASE from the prior week of 357,000.
    • Historical numbers: Peaked at over 650,000 in 2009. In 2010 we saw a decrease from nearly 500,000 early in the year to the low 400,000′s, in 2011 the claims were in the low to mid 400,000′s but since October of 2011 they have been below 400,000. The lowest we have seen this rate in 10 years is 282,000 in January of 2006, and the earlier part of the last decade we saw the average similar to what we are seeing now. During the Great Depression from 1929 – 1941 there was not the same level of unemployment insurance that we have today, although unions may have had some. It wasn’t until S0cial Security act encouraged it in 1935. Today we have the Federal Unemployment Tax Act (FUTA) tax to fund state agencies.

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