Jobless claims came in at 369,000, just below expectations of 371,000. This week’s reading was a welcome reduction after last week’s surprise jump.
If you look at the average of new claims filed, the pace of firings has been little changed. This seems to indicate that employers are keeping things on the hiring side status quo amid growing concern about a slowing global economy and the looming fiscal cliff.
The four-week moving average of jobless claims rose to 368,000 last week from 366,500. At the end of September, before the start of the quarter, the average was 375,500.
Continuing claims fell by 2,000 in the week ended Oct. 13, to 3.25 million.
Almost 2 years of benefits
Depending on the state you live in, benefit levels can vary. Earlier this year, some of those without a job could receive up to 99 weeks (just about 2 years) of unemployment benefits.
The number of weeks of extended unemployment benefits is gradually being reduced to 73 weeks in states with high unemployment and 63 weeks in the other states, and then eliminated entirely for next year unless new laws are passed.
My question is whether it’s beneficial to our budget and to the individual to receive benefits for so long?
I remember in 2002, when I was laid off abruptly as a trader after the attacks of September 11th without severance or a bonus, I was offered about 3 months of unemployment benefits.
The paltry sum they were paying me was not enough to support my lifestyle nor was it long enough for me to adjust to it, so I hit the pavement and found another job. The lack of time and money lit a fire under my butt to make something happen (many of you remember how bad things were in 2002).
I do NOT believe that by paying unemployed Americans roughly $360 per week for 2 years is a good way to motivate them. Benefits should be a bridge to bigger and better things, not a path to adopting a more humble lifestyle. If a recipient knew that thier benefits were only lasting 3 months, might they be motivated to take a similar paying job at a local company and perhaps grow within that company and feel more productive at the same time?
I agree that the employment situation in America is still fragile at best, but are extended benefits adding to the problem?
Do any of you agree that the $ 1.3+ billion being spent every week on benefits could be better utilized elsewhere?
Please don’t take this as an attack on those who are without a job, but rather as reverence for the creativity of the human mind and resiliency of the human spirit when challenged.