While most of the nations’ states unemployment rates have increased, some stated have been hit harder than others.
The state that has been affected the most is the state of Michigan. For the first time in over twenty years, Michigan’s unemployment rate has gone over 15%. No state has gone this high since 1984 when West Virginia’s rate rose to 15.2%. Reasons for Michigan’s increase in unemployment rate are due largely to the fall of the auto industry, and the many foreclosures in this state.
The next states to have the highest unemployment rate are Rhode Island and Oregon. South Carolina, Nevada, and California fall closely behind with their rates being around twelve and eleven percent. Over three million jobs have been lost since the first half of 2009 has begun.
Some companies have had to lay off many of their employees due to the effects of the economy. These include all different types of companies including companies such as Hewlett-Packard, Gannett Company, ST-NXP Wireless, Myspace/Fox Interactive, Electronic Arts, Hitachi, and IBM.
All different types of companies have been affected by stress of the economy. Mervyns’ laid off more than eleven thousand employees, United laid off almost three thousand employees, JP Morgan Chase Bank laid off over twenty-seven hundred employees, and Circuit City laid off over twenty-two hundred employees. GAP had to close many of their stores at several different locations, and many other stores are feeling the crunch, and are taking drastic measures to stay afloat. Other popular companies that have laid off over a thousand employees include companies such as Target, DHL Express, and Macy’s.
Because of the drastic increase in the unemployment rates, consumers are spending less money. Many factors work into this. The first being if the consumer themselves are unemployed. They will have little money to spend on anything but necessities. Next, due to the high unemployment rates, people are having to take jobs that pay less, therefore more and more people are having to pinch pennies and adhere to strict budgets. The next factor is that due to companies cutting jobs, people are feeling the need to put money away in case they become unemployed.
With the unemployment rates increasing steadily, people begin to live in fear that they will be next, and need to be prepared. Another factor that is responsible for consumers spending less, is the fact that credit is not so readily available. With so many people losing their jobs, they are not able to pay their bills on time or in some cases, at all.
Many people are not able to pay their mortgages, so naturally, credit cards and other bills start to get left behind. This all affects their credit scores. When one has bad credit, they are not able to get approved for credit cards to retailers. All of this contributes to even more jobs being lost. With more and more people having to choose to live frugally, more stores are feeling the pressure to downsize their number of employees. This provides the domino effect to go into place.
For example, a woman who works at an apparel store has been laid off due to the decrease in sales. She has a child that is not of school age, and before, had placed that child in daycare so she could work. With no job now, she is not able to pay for daycare, therefore she has to take her child out of the daycare center till she is able to find new employment. While taking only one child out of a day care center may not seem like much, once more parents start to lose their jobs, daycares will start to feel the need to downsize. Now the daycare teachers are losing their jobs.
With more and more people losing their jobs, people are having to take jobs in places they normally wouldn’t have before-hand. This affects the job market for teenagers who are trying to find jobs or young adults who are trying to make it in college. Employers are going to pass over the teenagers and college students because they have a larger number of applicants who are not having to adhere to a school schedule.
Some states are showing the promise of a brighter tomorrow. For help with unemployment, contact your local unemployment office for information. They are often able to help you determine if you are eligible for unemployment benefits or will be able to assist you in finding new employment.
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