Claims for Unemployment Benefits Jump, Consumers Keep Tighter Grip on Wallets

Written By:

What did you spend your hard-earned cash on in June? Don’t want to tell us, that’s fine.

We’ll just ask Big Brother.

He can’t pin-point the exact items, but he’ll probably tell us you spent less on everything from weekend getaways to clothes.

More than likely, he’ll also tell us you made a little bit more money. But instead of pumping it back into the economy, you stashed it away for safekeeping.

We know this because Big Brother has the cold hard facts.

The U.S. Commerce Department’s Bureau of Economic Analysis (May to June) shows us:
• Personal income jumped 0.5% ($61.8 Billion)
• Personal saving rose 0.4%
• Personal spending decreased 0.1% ($1.3 Billion)

Want the full report? We have it for you right here, dig in.

Acting U.S. Commerce Secretary Rebecca Blank voiced her opinion on the issue earlier this week. She blames the slight drop in spending on a number of things, including the ongoing financial fiasco in Europe.

But that’s not all. The recent spike in the number of people applying for unemployment benefits may have also played a role in the spending cutback. According to the latest Labor Department figures, jobless claims jumped to 365,000 during the last week of July. That’s up about 8,000 applications from the previous week.

Even more unsettling, unemployment ticked up to 8.3 percent, yet another factor that may be contributing to people pocketing more of their cash.

Personally, I blame my latest savings binge on several life-changing events (for my friends, not me). Without diving into too much detail about my personal life, I’ll sum it up by saying, tis’ the season for weddings and baby showers.

As Quizzologists, we’re glad to hear you’re saving. But as curiosity usually does, it’s getting the best of us. We want to know why you’re spending less and saving more. Don’t be shy. Share your secrets for savings success in the comment section below.

author avatar

Krystal lives, works, and plays in the Detroit area and loves covering a variety of personal finance topics for the Quizzle Wire.