While many watch holding their breath, the economic recovery seems to be stalling for our neighbours to the south. With an unexpected number of new claims for jobless benefits combined with slowing activity in the manufacturing sector, many economists are concerned the economy is not only stalling, but will take another downward dip back into a lighter form of recession. This risk has caused many investors concern, sending share prices plummeting. Not all analysts, however, share this fear.
John Canally, an economist with LPL Financial out of Boston says, "Just because the economy is slowing doesn't mean it's going into a recession, that's the nuance the market has not figured out. The market has pretty much fully priced in a double-dip recession; at this point we don't agree."
But according to the U.S. Labour Department, it was hoped the market would see numbers decline to 452,000, instead, state unemployment claims have risen by 13,000, closing the official number at 472,000. At the same time, stocks on Wall Street have fallen for the fourth straight day in a row.
Nearly eight million Americans lost their jobs during the recession, something Obama promised to address, but as the unemployment rate remains high, it is proving to be a sore spot for the Democrats. Even though layoffs have slowed from last year, many business owners are sceptical when it comes to hiring. Many Americans still doubt the strength and recovery of the recession. A report released during the last week of June showed only 13,000 private-sector hirings were added to the numbers, a disappointment as economists expected non-government job hiring to increase. As well, the National Association of Realtors showed there was a 30 per cent decrease in the sales of pre-owned homes.
A senior economist at Welch Consulting in Washington, Stephen Bronars says, "It's looking more and more like the job market is treading water. Layoffs are down from 2009, but hiring hasn't really picked up and this is disappointing. There is a lot of uncertainty on the hiring side. In order for the recovery to give people confidence it needs to cut across different sectors of the economy."
The Labour Department reported that for the last week of June, the number of people receiving jobless benefits had increased by 43,000, closing the June numbers at 4.62 million. As the instability of the economy continues to rise and fall, it can add many stresses to those making several monthly payments. If you are feeling overwhelmed by your payments, you may want to consider applying for a debt consolidation loan. There are many private lending institutions that cater specifically to clients with bad credit. A little research to find the right loan and the right lender can have you navigating the financial waters with relative ease.
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