New unemployment claims for benefits rose more than analysts forecasted for last week. Initial claims for benefits rose by 5,000 to a seasonally adjusted 417,000 claims. The rise was due in part by the striking Verizon Communications workers. Although there was a rise in unemployment in the U.S., the Labor Department states it is not near levels that would signal another recession.

Striking Verizon workers filed 8,500 jobless claims for benefits last week after submitting 12,500 claims the previous week. The strike ended earlier this week. Excluding the work stoppage by Verizon workers, layoffs appear to be stabilizing. Typically workers who walk off the job are not eligible for unemployment benefits, but some states have specific rules governing labor disputes.

The number of people who receive benefits under regular state unemployment programs fell to 3.6 million this week. That’s the fewest reported since Sept. 20, 2008, the week following the collapse of Lehman Brothers and the intensified ensuing financial crisis. At this point there are roughly 3.5 million additional people receiving extended unemployment benefits paid out by the federal government. These were emergency programs enacted by Congress. A total of 7.3 million unemployed workers received jobless benefits in the week ending August 6, 2011.

Businesses added 117,000 jobs in July. Twice as many new jobs are needed in order to significantly reduce the unemployment rate which now stands at 9.1%

Some analysts have suggested that the economy is improving. A huge jump in July for durable goods orders along with an uptick in consumer spending have investors feeling a little uneasy. The increase in consumer spending could only be the usual back to school purchases typically made in July and August. Investors will be watching for consumer spending to make modest gains through the fall as just another gauge of a possible pending recession looms.

The International Monetary Fund has recently issued a forecast setting a date when it expects China’s economy to overtake the economy of the U.S. IMF officials are forecasting that the date looms closer than one might think. 2016 is only four and a half years away and could mark the end to the U.S. dominance of the world’s economies.

Given our present problems of trying to get our economy growing again and the unfortunate attitude that Washington has concerning unemployment in this country, this ominous forecast looms in our near future while most experts believe this transition is decades away. Most experts are either in full on “ignore-mode” or completely unaware that this situation looms around the corner.

According to the IMF, whoever is elected to the Office of The President of the United States in 2012, could very well be the last U.S. President to serve over the world’s current largest economy. Given all the weak economic news for both the U.S. and China, it could happen sooner or later than the anticipated date of 2016 by the IMF. A decade ago, the U.S. economy was three times the size of China’s.

China’s economy is having great problems of its own right now which could slow down its progression to the #1 spot. Undoubtedly the outcome will be certain. The “Age of America’s Dominant Economy” is nearing an end. It remains to be seen what the effect to the confidence of the American consumer will be. America has been dominant for so long, there is no longer anyone alive who remembers the world differently. The U.S. people need to wake up and stop ignoring the realities of our future and elect leaders who do all within their power to keep this country at the top of the leader board.