Double Dip Looks More Likely with Rise of Jobless Claims

Last week, the number of people filing new claims for unemployment benefits rose by 12,000 to a seasonally adjusted 472,000. First-time jobless claims have stayed near 450,000 since the beginning of the year after falling in late 2009 until now. Despite the sluggish pace at which jobs have recovered, analysts continue to predict that claims will fall week after week and are wrong week after week. Layoffs persist and will likely remain the rule until the stimulus wears off, housing prices take another dip and we finally hit the bottom.