When one thing piles on top of another and as it rolls it’s causality expands. This is the case of what is going on with the unemployment number in the U.S. except what is SEEN seems to be the opposite.
No President has ever been re-elected with an unemployment rate over 8% so by September the American unemployment rate will be in the 7s. Here is some interesting information on the numbers.
Report says 230,000 unemployed losing benefits over weekend
By Vicki Needham – 05/13/12 06:24 PM ET
More than 230,000 unemployed workers will lose their jobless benefits this weekend as portions of federal programs expire across several states.
All told, 409,300 long-term unemployed Americans in 27 states will have lost upward of 20 weeks of federal unemployment benefits by this past Saturday, even as the many state jobless rates remain high, according to a new analysis by the National Employment Law Project (NELP).
The latest batch of cuts affects 236,300 unemployed people in eight states — California (11%), Texas (7%) Pennsylvania (7.5%), Florida (9%), Illinois (8.8%) North Carolina (9.7%) Colorado (7.8%) and Connecticut (7.7%) — half of which have jobless rates above the 8.1 percent national average posted in April.
“A growing number of long-term unemployed workers are being left behind,” said Christine Owens, executive director of the NELP.
“Job openings are not taking the place of these cuts,” Owens said.
A tier of 13 to 20 weeks of federal jobless benefits, used by the long-term unemployed, are expiring because of legislation Congress passed in February that gradually cuts federal benefits to 79 weeks from 99. That figure includes up to 26 weeks of state-level insurance.
So what has been happening is as people run out of their benefits they are no longer counted as unemployed. They didn’t get a job, but their NOT UNEMPLOYED. As they fall of those rolls the number decreases, well enough have fallen off to bring the state rates down low enough to lose those federal extended benefits.
As I said before the US is in the Longest Greatest Depression in it’s history, Unemployment passed the previous “Great Depression” 6 months ago. Housing has completely collapsed, repossessions exceeded “Great Depression” levels almost a year ago, add to that the 17 million new food stamp recipients, and the 48 million now living below the poverty line and you get a truer picture of conditions inside the U.S..
The snowball effect is in the massive growth of people winding up on welfare, losing their homes and all the other fun things that happen when you have no money, and there are no jobs to get. But that’s OK unemployment will be less than 8%