Unemployment problems are worse than meet the eye
Filed under: Economy
There are a lot of people out of work, which is the norm during a recession. There are almost no jobs available, which is a bit unusual during a recovery.
According to the The New York Times, a look at Labor Department statistics for the month of July revealed that "only 2.4 million full-time permanent jobs were open, with 14.5 million people officially unemployed." That's a six to one ratio -- the largest since they've tracked this stat. The immediate effect of the situation is obvious, but the longer term effects may not be. People will clearly be looking for work for a longer period than in previous recessions and the unemployment rate is almost certain to go over 10 percent, and may stay there for several quarters.
The stress that this problem will put on the federal, state, and local governments around the country will be immense. The first consequence of this major imbalance between jobs and the jobless is that federal and state governments will be providing an unemployment social safety net that they really cannot afford. Congress has already voted to extend unemployment benefits, further straining federal financial resources. But, many people who are out of work will run out of benefits early next year, further undermining consumer spending.
The other issue for government at all levels is that tax receipts will continue to stagnate at lower-then-expected levels, at least when compared to the federal Budget. IRS receipts may actually continue to drop, driving the deficit higher.
The recession may be over, but it may not be over for long.
Douglas A. McIntyre is an editor at 24/7 Wal St.



























Reader Comments (Page 1 of 31)
9-27-2009 @ 10:22AM
Rick said...
I am one of those people leaving Florida. The reason is that both my wife and I both had really great paying jobs and Yes were also putting money in our savings for a rainy day. Well that storm came and wiped us out. My wife lost her good paying job in November and found a part time job, because that is all she could find. We were doing fine til 6 months ago when I lost my great paying job. All because of the economy slowing down that we got laid off. The bank has already said they will not work with me and now we are losing everything and not because we went and spent like crazy but not finding anything in 6 months after, 100's of resumes sent out, 7 job fair and nothing. That is why were are leaving. Oh yeh could have gotten a job, but the company wanted to charge me $3900.00 up front and then a percent from the company that hired me. If I had that kind of money I would put it to better use than that. To end the story, we are moving in with the in-laws up North. Not because we want to but because we have too. It is really sad when a lot of people work so hard for so long and end up losing all the things we all worked hard for and now our credit is going to the dump because we can't live on the 275 a week the state gives for unemployment; the bank won't even look at us because the money that we make now will cover the utilities and food. Now with my wife in part time work which means no health insurance. Everyone keeps telling me "It will get Better" I have been asking myself all the time. When will it! We are getting forced to file for bankruptcy because our house isn't worth what we paid for it, no job, nothing here for us and that is they only thing we are waiting for, then we are moving up north.
Reply
9-27-2009 @ 11:30AM
widollar said...
Sadly, you and your wife are victums of the lousy political and business system that America has developed over the last 25 plus years. Spending hundreds of billions on two failed wars is foolish, and only adds to the unemployment problems in America. Our politicians have let us all down, and the greed of big business and the fake "Masters of the Universe" on Wallstreet is only pouring more gasoline on a burning fire. Banks are risk adverse, and will never help the middle class when they need help. Yet they continue to pay themselves millions of dollars in salaries and bonus money not earned. I wish the two of your better luck in the North. I too live in Florida and its a real mess in this state.
9-27-2009 @ 12:29PM
Lou said...
If you voted for Obama you deserve this if not than I feel for you
9-27-2009 @ 4:18PM
Jim said...
And if McCain/Palin won in November, life for the unemployed would be better? You Obama haters are clearly the dumbest excuse for Americans going.
9-27-2009 @ 4:39PM
Tim said...
Rick all the best to you and your family. I have been laid off twice since the fall of 2008, had a bankruptcy, lost my truck, my dog HUNTER passed away in May, and now I draw $275 and can't find squat for decent work. I get told I am overqualified and no one wants to hire me for an entry level job against my vast experience level. Companies can cherry pick and low ball the new hires from a vast pool of applicants and give them part time if they want to. This economy is a crap hole!
9-27-2009 @ 5:23PM
Kelly said...
Rick,
I can feel for you. Yes, folks say it will get better. My husband and I are in the same boat as your family. We also had to move from the south to the north to live with my inlaws. It was terrible. We have three kids, one of whom was to graduate last year. We lost everything, house, one of our cars and most of all self respect. We have been in bankruptcy for 16 months. To say we spent our money foolishly, never. We only bought what was needed. When the economy tanked, we did too. Our government spends daily what ten families could live on for a lifetime. Dont. even bother to degrade yourself to try to get help, they tell you no because you own property. I tell them I own nothing the courts own mine. Standing in food bank lines waiting on our next meal has become a way of life for us. Good Luck to You
9-28-2009 @ 4:48PM
R.E. said...
maybe we could all ask the feds for a bailout to pay off all debt and start fresh ,paying government back when our financial status is in better shape . this might even prompt government to funnel more money into areas that will provide jobs for middle class workers so that it can recoup money it laid out for those who struggled and losed almost everything
9-27-2009 @ 7:31PM
Cathy said...
you can thank the liberal Congress and Presidents of both parties for this economic disaster we are experiencing. you notice they are still earning a six figure salary with taxpayer funded benefits. we've got to take the power and money away from them. they work for us...
9-27-2009 @ 7:40PM
vaughn d. gale said...
Sorry to hear the bad news Rick. We ALL are in some way, shape or form taking a BEATDOWN which has been caused by the TRICKLE-DOWN. Hope things work out. Hang in there. Stay strong.
9-28-2009 @ 10:36AM
jack said...
I am in the same boat, except I had to quit my job, to care for my ailing father. I was out of work for a total of 10 months. My family had to move in with family, until we could get back on our feet. We too had a little put away for a rainy
day. When that money was gone, and we were looking for a underpass to reside under, we moved to Ga. We lived in Ca., and moved to Az, so we could afford to care for my father, while he was dying. After he passed, all we found in Az, were jobs that paid 7.50 a hour, and part time to boot. After living in Ga. for 4 months, I have finally found a job, with a good wage. Now, my wife had to take a job at Walmart, and they don't offer full time.
Where is the help for the struggling families, that make to much, or made to much to get Government assistence? You don't see ACORN offering us help, do you? You don't see the Government looking out for our well being, do you?
I know most of these problems started under Bush, but, Obama has hindered our growth, also.
If you want change, vote out the incumbants, and vote for people who have not served in a Government office before. All our Government has done, is tax us to the "Poor House"! Washington is to blame for all of our problems. NO MORE NAFTA, WHO, WTO OR WHATEVER!!!!!!!!
9-28-2009 @ 11:57AM
trotinboot said...
Don't worry Obama said he would take care of everything
9-28-2009 @ 12:20PM
David J Bhaltazhar Esq said...
God Bless You My Friend!
9-28-2009 @ 3:41PM
rrugglesart said...
Don't move too far north! I'm preparing to leave Michigan as soon as I can sell my house; however, selling in this market is also a losing proposition.
9-28-2009 @ 4:03PM
LindaC said...
I feel for you and your family Rick. I, like many others are in the same situation as you. What I don't understand is that in the city that I live in Ca. is flat broke. Yet, they're blackmailing citizens to raise city sales tax another one percent to pay for a new library. This is the third sales tax increase in ten year and will bring us to a 9.75 percent sales tax. Unemployment is at an outstanding 15.6 percent, yet city supervisors vote themselves raises, then cut sevices. It is an outrage.
9-28-2009 @ 3:58PM
alvin said...
unfortuneatly not much up north as mass just went up to 9.1%
9-28-2009 @ 4:09PM
stagehand said...
I left Florida back in January. I got laid off in October. It took till December before I got my unemployment. I am in Pa taking care of my father. I moved into an area that exceeds the country's unemployment rate. The thing is it won't get better any time soon I am afraid. I wish you and your wife good luck, you are goin g to need it.
9-28-2009 @ 4:20PM
Mousepd said...
Rick, you and your famliy should consider moving over here to Louisiana or Texas. Louisiana has had the highest job increase of any State for the last nine months. Most everywhere people are losing jobs. Not here. We're lowering taxes for small and large businesses while other States are raising. That means that a lot of companies are relocating to places like Louisiana and Texas.
Or you can continue listening to Washington telling you that "The Recession is over, we have saved millions of jobs and we're in the clear now. The only thing clear is TAXES means less MONEY. Period. Less money for jobs, food, rent, etc. Come to Louisiana. Home of the L.S.U. Tigers. S.E.C. National Champions.
9-28-2009 @ 4:32PM
patty said...
Sorry for all the famlies in this mess. Have you heard the saying "A country boy will survive". Look back people and plant vegtables, hunt, yard sale, pick up cans on the side of the road, can vegtables, use coupons, never buy paper towels and napkins, shut off the lights, shut off the cable, internet im sure cost money, no cell phones, roll pennies and dimes, nickles (quarters aare spent already), you can squat on a nice piece of land or forclosed house; get ride of cars buy one junker. And then ALWAYS REMEMBER HOW TO LIVE POOR. By the way thank god you do not live in a third world country
9-28-2009 @ 4:33PM
Gail E. Cooper said...
Rick, May GOD cover you and your family. I'm so sorry to hear about your troubles and you certainly are not alone! I really hate that Florida is falling apart because I vacationed there twice and really liked it. As long as you stay healthy and focused, things will improve. At least you won't be homeless. Leaving Florida may just open the doors to your dreams. I will keep you and your family in my prayers. Much Love.
9-28-2009 @ 4:50PM
Bob said...
Save your money, stay south it is 10 1/2 % in Chicago, there are no jobs here. You will just be wasting gasoiline driving north.