Unemployment Claims Fall

A recent report by the U.S. Department of Labor showed initial claims for unemployment fell to 418,000 for the week of July 2.

That number is 14,000 lower than the previous week. The four-week average also fell approximately 3,000 to the most recent figure of 424,750. The fact that close to 2,500 Minnesota government workers who are temporarily out of work due to the state's shutdown was another factor that could be keeping that figure elevated.

The seasonally adjusted insured unemployment rate for the week ending June 25 declined slightly to 2.9 percent, compared to a week earlier, when the rate was 3 percent. Insured unemployment for the same week decreased 43,000 to the most recent figure of 3,681,000.

Consumers who recently lost their jobs and have applied for unemployment may want to be careful with their spending output. Using a credit card while unemployed could be a very bad idea, and those who do may be at a much higher risk for hurting credit scores. For those who have credit card debt and are laid off, it could be a good idea to continue paying minimum payments until another income stream is established.