Yet another indicator of a recession, the government is reporting a dramatic increase in the number of food stamps used by poor families.

The New York Times is reporting that due to layoffs, rising food and fuel prices the number of Americans receiving food stamps may hit 28 million by this year’s end - the highest level since the food aid program began in the 1960s.

While historically the rate of near-poverty households who qualify for the $100 a month per family member subsidy has fluctuated over the years, this year is looking especially dire. There application’s are up in many states and officials and experts have attributed it to the economic slowdown.

Sayeth The Times:

Citing expected growth in unemployment, the Congressional Budget Office this month projected a continued increase in the monthly number of recipients in the next fiscal year, starting Oct. 1 — to 28 million, up from 27.8 million in 2008, and 26.5 million in 2007.

The percentage of Americans receiving food stamps was higher after a recession in the 1990s, but actual numbers are expected to be higher this year.

Federal benefit costs are projected to rise to $36 billion in the 2009 fiscal year from $34 billion this year.

“People sign up for food stamps when they lose their jobs, or their wages go down because their hours are cut,” said Stacy Dean, director of food stamp policy at the Center on Budget and Policy Priorities in Washington, who noted that 14 states saw their rolls reach record numbers by last December.