Unemployment Rates Rise, Funds Dry, Employees Everywhere in need of Payday loans

A Nation In Need

December is already delivering another brutal blow to the American economy as 20 companies announced more massive cuts. This comes just after Novembers landslide of nearly 500,000 layoffs – that many more people couldn’t get payday loans if they needed them.

More Jobs Lost. A Record Trend Forming.

Employees everywhere are hunting for payday loans as layoffs continue to rise and state unemployment benefits run dry.

This month continues on the heals of last month with it’s share of layoffs around the nation. Monday we started with layoffs from Fortune 500 company “Dow Chemical” who eliminated 5,000 positions and closed 20 plants. 3M also reported 1800 cuts.

On Tuesday, 14,400 more jobs were reportedly lost as Sony, Danaher Corp, Wyndham Worldwide, National Football League, and Principal Financial Group eliminated position within their companies.

The trend continued last Wednesday with the announcement of another 2200 planned job cuts by Office depot and the British mining company Rio Tinto’s 14,000 jobs cuts worldwide.

On Thursday, bank of America got in on the action announcing to cut 35,000 jobs over the next three years.

Then on Friday we had the company Chemtura, cut about 500 people from its staff and Fairchild Semiconductor announced its’ plans to cut 1100 jobs.

Half Million Jobs Lost in November, More Expected in December

Together 81500 jobs were lost. Decembers total stands at an astonishing 115,416 jobs lost and may prove to be worse than Novembers where 533,000 jobs were lost. November marked the largest loss since 1974.

Rich Yamarone, director of economic research said the following;

” it’s going to be the longest recession we’ve had in post World War II history.”

Bernard Baumohl, chief economist at the Economic Outlook Group said

“Generally companies like to make their cuts by the end of the year,the job market will continue to deteriorate for the next couple of months,”

Job losses of up to 600,000 a month are expected and numbers may exceed 600,000 depending on the speed of the sinking economy. If job losses keep their current pace, 2008 could show the worst job losses since 1945. Over 2.75 million jobs were lost in 1945.

Unemployment Expected to Rise Through 2010

The current unemployment rate which currently stands at 6.7% is expected to rise through 2010 to an estimated 8.5 to 9%.

Depending on the auto bailout, things could get even worse. Currently congress is looking into making provisions for the auto companies from the 700 billion dollar bail out bill that was passed in October.

The rise in unemployment claims have left several states calling for emergency funds. Michigan in lieu of the automakers collapse has nothing left in it’s trust fund for unemployment benefits. Michigan has been borrowing money since 2006 from the feds and has done their best to pay off the loans but since last January they have accrued $473 million of debt covering unemployment costs. These costs will be passed to the states employers who will have to pick up the tab.  You can’t get payday loans that big!

Ohio also is running dangerously low on funds with the rise of claims this year which are 40% higher than last year. They currently have a balance of only $304.6 million dollars in reserve. It is speculated that $2.3 billion will be needed to withstand even a moderate recession.

Aid Not To Be Found

With these two states and many others feeling the crunch of rising unemployment rates, many are expected to run to the federal government for aid however, the feds don’t have much left to give after the Octobers Bailout Bill.

What’s to happen from this point forward is any body’s guess but things don’t look like they will be getting better for some time. Whispers of another great depression continue to get louder as more and more people are finding themselves looking for payday loans.