Bad Credit Blues

Unemployment Rates Surge

Update: Friday Feb. 6 - Recession-battered employers eliminated 598,000 jobs in January, the most since the end of 1974, and catapulted the unemployment rate to 7.6 percent. The grim figures were further proof that the nation’s job climate is deteriorating at an alarming clip with no end in sight.

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New state unemployment benefit filings in the US have jumped to a 26 year high. In addition, the number of people who are staying on the unemployment rolls have also hit record levels.  Analysts expect a loss of over 500,000 payroll jobs to be reported soon.  That’s half  a million new people who are out of work, which would fill up a mid-sized US city.

Labor Costs Decline

For business owners, labor costs are sliding downwards. If you can afford it, and need labor, it may be a good time to add staff. People who are looking for work may have to accept lower salaries, and businesses can find qualified people at bargain prices. While this is not good news for workers, it should be a time for some thriving businesses (and there are some) to add more staff.

Hopefully some of the promised tax cuts and other economic stimulus programs being debated in congress will help tide workers and strugglilng businesses over until this all turns around. But meanwhile, it is time to hunker down (as we say in Texas) as this is not expected to end soon.

Sometimes You Just Need More Money

For struggling workers, it may be time to look into moonlighting. Many freelancers are booming now!