Image via Wikipedia

According to an article in the Dallas Morning News, the Labor Department reported that new jobless claims fell slightly last week while the number of people receiving unemployment benefits rose.

The article said:

“First-time claims have trended down in recent months and are well below the recession’s high of 674,000 hit in the first week in April. But even with the improvement, they are running at levels well above the 325,000 mark considered a sign of a healthy labor market.”

There are a total of 9.14 million Americans receiving unemployment insurance benefits; about 3 million of them are using the emergency unemployment extension program which added 53 weeks to the existing 26 weeks of unemployment insurance.  What will happen when these benefits run out?  We have millions of Americans who haven’t been able to find work with a living wage since the recession began and are depending on unemployment insurance to provide for their basic everyday needs.  Most American workers were not and are not prepared for unemployment that lasts 2 or even 3 years. And many workers who suffer a job loss, grossly underestimate the amount of time and energy it takes find a new job with comparable wages in this downturn.  For those workers who are still employed, it is absolutely essential that you begin saving enough money to cover your expenses and debt payments in case of a job loss.  In good times financial experts recommend that workers save 3 to 6 months of expenses; but in bad times saving up to one year’s worth of expenses is advisable. We haven’t experienced long-term unemployment like this since the 1930’s; but when times get rough, periods of unemployment lasting 3 or even 4 years is possible. Examples of long-term unemployment are prevalent in European countries such as Spain, Greece and even France. Be prepared!  Consider all of your options for reducing or eliminating debt, including bankruptcy and don’t forget to keep cash on hand for unexpected emergencies that could otherwise cause you to take on debt.

Source: Dallas Morning News

Related Posts