More People Apply For Unemployment Benefits

It seems that private company lay-offs are on the rise again as indicated by the sharp increase in the number of people filing new claims for unemployment benefits last week. This took place after three consecutive weeks of declines in unemployment benefits applications.

Job growth has slowed down again and is keeping the economy from gaining any sustainable strength. Consumer prices are also falling down. There has been a 5.2 percent drop in gasoline prices and a 0.2 percent decline in the consumer price index.

Still, layoffs are a big concern for the recovery. The number of people on unemployment benefits grew by 88,000 to 4.57 million. This doesn't include the 5.2 million people who receive extended benefits paid for by the Federal government.

Congress approved 73 more weeks of extra benefits on top of the 26 weeks usually given by states. The extended benefit program expired this month. The House has approved an extension of the benefits through November. Though the Senate has yet to act.

And on top of all these, the Labor Department said earlier this month that the economy generated only 41,000 new private-sector jobs in May, down from 218,000 in April.