If you are waiting for the economy no rebound until you can fully recover from the recession, you may be waiting for a long time. Don’t wait too long on not paying your creditors. If you don’t deal with your creditors, they can take you to court and force their way into your funds. The biggest news today is slow growth on the most recent jobs report. We only increased job numbers by 115,000 new jobs in April. There is a very interesting article on Fox Business News that can help you read into the numbers a bit more so that we can be more aware of what kind of numbers we would need in order to fully recover from the recession. The writer, Elizabeth MacDonald, with the help of economist, Peter Morici, have crunched the numbers and reported estimates on what our jobs report numbers should look like for us to get back to normal.
Here is the link to the article: http://www.foxbusiness.com/investing/2012/05/02/emac/#comment-517203193
And here are the best highlights for a quicker read:
1.) “Some 80% of the reduction” in the unemployment rate from 10% hit in October 2009 to today’s 8.2% “has been from adults quitting the labor force,” says economist Peter Morici.
2.) And there is statistical manipulation in the unemployment rate, too. The government’s reported unemployment number doesn’t include people who stopped looking for work, but who want jobs.
3.) … the unemployment rate is the number of people out of work but who are actively looking. The government doesn’t count in that rate the now 6.3 million who have given up and stopped looking for work, but want jobs. That number has grown from 5.7 million in January 2009.
So, this “improvement” in the unemployment rate is artificial — it was due to workers giving up and dropping out of the labor force.
4.) Morici adds the unemployment rate “rises to 14.5% if you factor back in those who’ve stopped looking for work but would re-enter if there were jobs, as well as part-time workers who would prefer full-time positions.”
5.) Morici says the U.S. economy “must add 13 million jobs over the next three years — 362,000 each month — to bring unemployment down to 6%. GDP would have to increase at a 4% to 5% pace.”
You read it right. We need to add 362,000 jobs EACH MONTH for the next 3 years to bring unemployment down to normal numbers. At this point in time, we are barely putting a few months together at over 100,000 new jobs every month. Southern California is one of the hardest hit areas from the recession due to real estate speculation. Our unemployment numbers are higher than the nation’s average. Riverside and San Bernardino Counties was several points higher than the national average unemployment all of last year and still continues to trail behind.
Many people are waiting until their home values rise again. Many are hoping that their investments will get back above water soon. According to what we have read here, there’s nothing coming back very soon. Don’t get into a deeper debt trap by funding your survival with credit. If you fall into too much debt and continue to increase your debt until there are no funds left to manage all of the debt, your debt amount will grow in multiples due to interest rates, penalties, and attorney fees. If your debt is continuing to grow without end in sight, bankruptcy may be the best option for you.
For more information, please contact Bankruptcy Law Professionals at (855) 257-7671. We have offices in Riverside, Tustin, and La Mirada to serve you.