President of Americans for Limited Government Rick Manning issued the following statement reacting to the release of weekly Unemployment Insurance Claims by the US Department of Labor.
Weekly unemployment insurance claims filed in the week ending July 2 by the US Department of Labor sent another warning sign that the overall economy is tipping toward recession as jobless claims continued their gradual creep upward. The seasonally adjusted claims climbed by 4000 to 235,000, while the four-week average nudged up 750. In a vacuum these numbers are not bad, but the steady increase of claims since April second’s low water mark of 166,000 cannot be ignored. What is more, the overall number of people on unemployment insurance rose by 51000 last week, indicating that the ability of the economy to fully absorb newly unemployed may have reached a tipping point.
It must be noted that the weekly unemployment insurance claims report is notoriously volatile, but a trend that lasts for almost a full quarter cannot be ignored.