Unemployment figures paint a gloomy picture

10.27.08
By Timothy Green

Job loss is up there on many people's list of nightmare scenarios, alongside divorce and having your home repossessed by the bank.

Now, new figures from the U.S. Department of Labor suggest that as the economy continues to falter, more Americans are finding themselves confronting this challenging situation.

According to the department's most recent data, filings for jobless benefits rose by 15,000 during the week ending October 18th to reach a total of 478,000. Compared with the same time last year, the number of unemployed people is 44 percent higher.

Even in the current climate, the figures have come as a surprise. "They're alarming numbers and until year-end we'll see the results of massive layoffs hit the economy in a big way - in a way not seen since the end of the tech bubble," Peter Cardillo of investment firm Avalon Partners told CNN Money.

And financial experts are not the only ones who are sweating about this trend. A recent CBS News/New York Times poll reveals that 35 percent of Americans say they are "very concerned" that someone in their household will find themselves jobless within the next 12 months.

CBS News says this is the largest amount of concern that has been recorded about employment since March 1996.

If you are unlucky enough to lose your job, you may wonder how you can possibly continue to pay bills, make mortgage payments and sort out your credit card.

It may be challenging, but experts suggest that you first get in touch with your creditors to explain your situation and see if they can work out an alternative payment plan.

You may also want to create a budget that will help you keep expenses down while you look for another job. Meanwhile, consider whether you would like to apply for a small loan to help get you through this tough time.

More Employment Trends Articles | News Home | Discuss in our Forum

Unemployment is rising, figures show