The number of Americans on benefit rolls is at four-year high, according to the Labor Department.

According to Thomson Reuters, a report from the Labor Department showed “the number of workers still on the benefit rolls after drawing an initial week of aid held at 3.073 million in the week ended May 10, the latest for which figures were available. The last time so-called continued claims were higher was in March 2004.”

However, first-time claims for state unemployment benefits unexpectedly fell 9,000 last week to 365,000.

“The battle with economic slowdown will be a long, tough slog,” says Taipan Daily editor Justice Litle, “as will be the battle against inflation. The Fed went so far as to admit conditions could still be bad in 2010.

“It’s a bit hard to swallow for those of us who’ve been paying attention but, believe it or not, slowdown worries and inflation woes are still big news to some folks out there.

“There is a hefty cross-section of investors (and Wall Street pros, too, for that matter) who are just “waking up” to the reality that we at Taipan have been shouting about from the rooftops for so long.”