Job losses likely to affect household spending

07.06.09
By Lewis Green

The government's release of the latest job numbers showed the unemployment rate inch slightly higher to 9.5 percent.

Last week the Bureau of Labor Statistics also announced that nonfarm payroll employment declined in June by 467,000.

With the number of unemployed persons reported as 14.7 million - an increase of 7.2 million since the onset of the recession - many are wondering how families will adjust their spending in the case one or both income earners are out of work or fearful of losing their job.

Labor secretary Hilda L. Solis commented on Thursday about the job loss figures and the steps the government is taking to get individuals and families back on their feet.

"We are moving swiftly to protect workers who have lost their jobs and to provide new training opportunities so that workers can upgrade their skills and prepare for new employment in growing and emerging sectors like green jobs and healthcare," said Solis.

In the meantime, many families are postponing vacations and foregoing dinners out for mealtimes at home.

Small saving measures like clipping coupons and driving less are ways families are reducing their outstanding credit card debt and putting away money in so-called rainy day funds.

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Household spending patterns remain uncertain