Today the Labor Department announced a drop in new claims for unemployment benefits. This drop means that we have seen a decrease in 4 out of the last 5 weeks. That is a far cry from where we were only a year ago. What does this drop mean? Well the signals could mean a variety of things. For one, the Monster Jobs site has noted an increase in employment postings. That means an increase in companies looking for workers. Also, the drop could be contributed to the increase in hiring by the government in regards to the 2010 census. All around the country people that are unemployed, underemployed, or just looking for more income are coming out to work for the 2010 Census. This is extra money being spent on Americans that will then be used on primarily goods made and sold in America. Another aspect to look at is the recent storms of February. Those storms created a need for additional workers to help clear roads and clean businesses.
So what can we do to ensure the amount of claims drop and the amount of jobs increase? This is even a more complex issue than what causes the claims to drop. The main thing we need to focus on in this country is stimulating local economies. Local businesses are really the things that help a state avoid bankruptcy. If the local economy is booming, the local government will be able to offer programs to assist that same economy with the money collected in the form of taxes and fees. Take for instance Hawaii, the more the private sector shrinks, the more people there are for the government to help. However, as the economy begins to recover, we will see an increase in the work force of the private sector and that will in turn decrease the amount of aid the state will need to distribute to individuals.
The interesting point to all of this is that it seems the actions of our President and of Congress has helped to keep the blood loss of the economy at a minimal. This has allowed the economy to begin to heal from its wounds and looks poised to move forward. Is this the result of the stimulus package? That can be debated. But one thing is certain. The worst seems to be behind us and the best is on its way. Lets keep working together to fix this economy and do our parts to ensure we never have to go through this again!