Unemployment Claims Indicate Consumers Still In Debt

After seeing a drop in the overall unemployment rate in January, new benefits claims rose many economists' expectations last week.

Overall, 410,000 Americans took out new claims during the week ending February 12, up from the revised figure of 385,000 seen in the previous period of study.

The four week moving average for unemployment claims was 417,750, an increase of 1,750 over the week ending February 5, The United States Department of Labor reported. As of the end of January, there were now nearly 10 million Americans struggling with unemployment but still receiving benefits.

In addition, the number of consumers under regular state benefits programs rose to 3.91 million for the week ending February 5. The report indicates many Americans are still having difficulty finding work, despite recent claims by economists that the recovery could be around the corner.

In 2010, nearly 4 million Americans ran out of unemployment benefits both at the state and national level, and as a result, may be using their credit cards more frequently to make payments or relying on others for private assistance.