Unemployment applications rise by 10,000

Thomas Bell Contributor
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The U.S. Department of Labor announced today that ten thousand more Americans applied for unemployment benefits last week than it had forecast a week prior.

Bloomberg reports that Americans filed 418,000 jobless claims last week while only 410,000 were expected to apply.

The DOL attributed part of the increase to the government shutdown in Minnesota and scattered timing for auto plant shutdowns between model seasons.

More unemployment troubles are on the horizon.

Several large U.S. corporations announced future layoffs this week in an effort to boost profits as employers remain uncertain about the direction of the economy.

Lockheed Martin offered 6,500 employees a voluntary layoff plan yesterday in anticipation of further cuts in August. When its retail stores close in September, Borders will leave 10,700 Americans without jobs, while Cisco Systems plans to cut 6,500 posts soon. Even financial giant Goldman Sachs will eliminate at least 1,000 positions in the near future.

Around 3.7 million Americans are already receiving jobless benefits as the unemployment rate hovers around 9.2%.