Unemployment statistics offer glimpse of widespread debt management problems

10.22.09
By Timothy Greene

Recent government statistics confirm that people in some states are facing far greater difficulties with debt management than in others because of the availability of jobs.

According to the latest numbers from the Bureau of Labor Statistics (BLS), residents of Michigan, Rhode Island, Nevada and California are facing the highest unemployment rates in the nation, raising the specter of ongoing ruin to credit scores and other financial problems for millions of Americans.

The BLS noted that in September, 23 states saw over-the-month unemployment increases, while 19 saw their rates decrease. The nationwide unemployment rate stands at 9.8 percent, and economists have widely projected that it will exceed 10 percent before it starts to slowly retreat next year.

Worse for many workers, members of Congress have been unable to agree on legislation that would extend unemployment benefits for millions nationwide. As that debate goes on, more people are seeing their safety nets disappear, making their financial prospects even more uncertain.

Another reason for short-term pessimism on the unemployment front came in the form of a separate report from the Department of Labor on Thursday. This week, the number of workers filing for first-time unemployment benefits rose 11,000 over the previous week to 531,000 nationwide.

First-time filings for unemployment benefits have generally declined from reaching highs earlier this year, but the trend has been one of inconsistency in recent weeks as opposed to a downward one.

This would seem to bear out the expectation of many economists that while a recovery appears to be getting underway, it will be a slow and tough one, especially in the area of job creation.
From a credit and debt management perspective, this is mostly bad news for consumers because many still have limited prospects for getting back on their feet financially.

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Financial difficulties remain with millions of Americans.