Majority of U.S. Unemployed Ran Out of Benefits

Most of the unemployed no longer receive benefits –

The situation is bound to become worse in early 2012 if congress does not approve another extension of benefits.

The drop in the number of officially unemployed is the real factor behind the decrease of the nominal unemployment rate to 9%. The number of jobs created during the last six months barely keeps up with the population growth, let alone cutting the real number of the unemployed. But as people stop collecting benefits and/or give up looking for work, they drop from sight.

Out of sight, out of mind as the saying goes.

The repercussions for all of us are that each person without work becomes a minimalist consumer and that works against the prospects for a sustained recovery.