Get ready. There's a good chance the nation's unemployment rate will top 10 percent when the October data is released tomorrow. The jobless rate in September rose to 9.8 percent. The media will, of course, jump all over the story even though it has been expected. There is, however, growing evidence that the jobs situation is gradually improving. This morning the Labor Department reported that the number of people filing for unemployment benefits fell to 512,000 in the past week, the lowest level since January. And, the number of people receiving benefits on an ongoing basis declined again, falling by 68,000 to 5.75 million, the eighth drop in the past nine weeks.
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Legislation extending unemployment benefits was approved yesterday by the House of Representatives and could get Senate approval as early as today. The President is likely to sign the bill when it comes to his desk. The plan would provide an additional 20 weeks of benefits to those who have exhausted their allotted coverage. Attached to the bill is a provision to extend the $8,000 tax credit for first-time homebuyers through June 2010. It also includes a $6,500 tax credit for existing homeowners who sell their current residence and buy another.
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Two reports are out today about consumer confidence and they have completely different results. The RBC Consumer Attitudes and Spending by Households -- CASH -- index found confidence dropped sharply in November. "American consumers are not yet convinced that their financial and employment situations are stable," said Ira Jersey of RBC. The number of consumers who say they are less confident investing for the future rose to 59 percent, up from 54 percent in October. As a contrarian, I am thrilled to see rising pessimism.
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The gloomy news from RBC is offset by the Harris Poll, which found that 88 percent of Americans are satisfied with their lives and 54 percent are very satisfied. More than 40 percent of the people surveyed feel their situation has improved over the past five years compared to 27 percent who feel things have gotten worse. And, 54 percent believe their personal situation will improve over the next five years.
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A veteran of the restaurant business will soon be opening 11 Corner Bakery Cafe locations around San Diego County by 2016. Steven Fricker of S&B Development has developed more than 100 restaurants and is the immediate past chairman of the board of the California Restaurant Association. There is one Corner Bakery Cafe located in Mission Valley and another in Plaza Bonita. More than 115 outlets are located across the country. Fricker began his career with Jack in the Box, where he spent 15 years in various management positions. His business partner, Bob Carson, has 35 years of experience in shopping center development in the local real estate market. It is exciting to see a couple of guys step up and seize the opportunity when most others are afraid to even take baby steps. As it has been said, great wealth is created in times like these.
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Kellogg has announced it will remove statements from its boxes of Rice Krispies and Cocoa Krispies that the cereals "help improve your child's immunity." The company said that last year it started adding antioxidants to its cereals. "While science shows that these antioxidants help to support the immune system, given the public attention to H1N1, the company decided to make this change," said a company statement. I guess the company is worried that some people might think that downing a big bowl of the snap, crackle and pop stuff is equal to getting a flu shot. Kellogg said it will continue to respond to the desire for improved nutrition.
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