Unemployment Benefits Claims Increase by 500,000

The latest unemployment figures released by the US Labor Department report that the number of people filing for unemployment benefits increased by an unexpectedly high figure of 500,000 during the week ending on the 14th of August 2010. A substantial increase in the number of people claiming benefits under the current federal extensions to the unemployment benefits structure, which are due to expire on the 30th of November 2010, was also indicated in the figures released, increasing speculation and fears that the American economy is indeed heading towards a “double dip recession.”

Some economists have tried to downplay the significance of the 500,000 increase in the number of people filing for unemployment benefits, attributing it to the recent Census Bureau lay-offs. However these explanations have done little to allay fears, and pressure on Congress to further extend the current extensions to the federal unemployment benefits structure and implement a new Tier 5 to the unemployment benefits structure continues to mount.

Although bills incorporating the proposed implementation of a new Tier 5 to the existing benefits structure have been presented to Congress, such as the ‘Americans Want to Work Act’ or S.3706 unemployment extension bill presented by Senator Debbie Stabenow (D, Michigan), both the Speaker of the House Nancy Pelosi (D, California) and the Senate Majority Leader Harry Reid (D, Nevada) have given statements to the effect that these proposals regarding unemployment benefits will not be considered until the Congress returns after the November 2 elections.