Think high unemployment concerns have passed? Well, according to the Labor Department, these concerns are just as pressing as ever, with a paltry number of jobs added in May to keep up with the growing demand of an expanding labor force.
As Reuters is reporting, “Employment rose far less than expected in May to record its weakest reading since September, while the jobless rate rose to 9.1 percent as high energy prices and the effects of Japan's earthquake bogged down the economy. Nonfarm payrolls increased 54,000 last month, the Labor Department said on Friday, with private employment rising 83,000, the least amount since June. Government payrolls dropped 29,000. Economists polled by Reuters had expected payrolls to rise 150,000 and private hiring to increase 175,000 in May. The government revised employment figures for March and April to show 39,000 fewer jobs created than previously estimated.”
It appears that the labor market has stalled with news of flagging consumer confidence, higher gas prices, and a drop in manufacturing. Add to that, the nation’s recent spate of weather-related disasters—from tornados to flooding—damaging businesses, displacing workers, and impacting unemployment, and this period could signify a dramatic worsening of an American employment slowdown that began early in the year.
“The unemployment rate rose to 9.1 percent last month from 9.0 percent in April as some discouraged workers who had been inspired by the pick-up in hiring in April re-entered the labor market,” reported Reuters. “’There is so much slack in the labor market it's going to take a long time to get the unemployment rate down to between 6 and 7 percent. That's going to take years,’ said Stephen Bronars, a senior economist at Welch Consulting in Washington.”
So, what do these dire economic conditions in the labor market mean for average families attempting to navigate their own uncertain financial times?
It means shoring up your financial foundation for the near (and possibly distant future):
Don’t Quit Your Day Job
While many people are just happy to have a job, many more are less than content with the rampant underemployment, low wages, few benefits and long hours found in nearly all employment sectors these days. But despite this dismal labor market, doing what it takes to hold on to your job can be essential to keeping your head above water for the long haul. Working harder, longer, and even in multiple roles and jobs, now seems the new norm of a not-yet-healthy economy.
Take a Second Look at the Luxuries
With summer now in full swing, you may be considering vacations, summer programs for the kids, or even a sabbatical. But with a weakened workforce, it may also be a good time to reevaluate what the basics are for your family’s budget, as well as more meaningful trips that may mean less wear and tear on your wallet.
Cut out (and up) Those Credit Cards
Spending hundreds, maybe thousands, a month on high interest consumer credit is money badly spent—funds that can’t be used to set up your savings for a rainy day (which in this economy could be “any day.”)
And we recommend ending the debt cycle of the current laboring labor market by joining the million Americans choosing bankruptcy this year, all for the opportunity to save yourself from another decade of debt. Your first step? Contacting a qualified bankruptcy attorney to help you regain control of your financial coffers, conquer creditors and get back on a better budgetary track—yielding all with the right kinds of support, information and insights during the coming years—come feast or famine.
The bankruptcy professionals at the Law Offices of John T. Orcutt offer a totally FREE debt consultation and now, more than ever, it’s time to take them up on their offer. Just call toll free to 1-888-234-4181, or during the off hours, you can make your own appointment right online at www.billsbills.com. Simply click on the yellow “FREE Consultation Now” button.