Payday loans help — when payday is coming
Payday loans can help families that run into financial emergencies, but unfortunately that can’t keep employers from laying off workers.
In fact, if legislators keep making laws that run payday loans companies out of business, even more workers will be out of a job.
Almost 5 million unemployed
The first week in February, the number of people remaining on the benefits rolls after drawing an initial week of aid was 4.99 million. That’s the highest number on record since the data started being collected in 1967.
New unemployment claims held steady at 627,000 the second week in February, nearing a 26-year high. Luckily most unemployed workers can get by without payday loans because most states pay claims weekly.
Grim comparison
Last year at this time, 2.77 million people in the United States were continuing to collect unemployment benefits. And the 5 million who are continuing to file jobless claims don’t even tell the whole story.
An additional 1.5 million people are receiving benefits under an extended unemployment compensation program approved by Congress last year, bringing the total number of people receiving unemployment benefits to 6.54 million for the week ending Feb. 7, according to the Associated Press.
The economic stimulus package approved this week also further extends unemployment benefits.
Dreary forecast
The U.S. Federal Reserve Wednesday updated its economic forecast. Basically, the Fed said things will be worse than they thought. The report says the economy will contract even more in 2009 and unemployment will keep going up.
“The new forecast predicts that unemployment will hit between 8.5 and 8.8 this year, up from the current level of 7.6 percent,” says the Associated Press.
Contributions to unemployment
October 2008. Unemployment not looking good in the rest of the world, either.
The biggest tire maker in the U.S., Goodyear Tire & Rubber Co., says it’s going to cut nearly 5,000 jobs, nearly 7 percent of its work force. The cuts will be made this year. The company posted a fourth-quarter loss and revenue sank 21 percent. Goodyear already cut about 4,000 jobs last year.
More trouble for automakers
General Motors Corp. and Chrysler with both make some hefty contributions to the unemployment rolls. GM said it will cut 47,000 jobs globally this year. Chrysler says it will cut 3,000 more jobs.
Sounds like GM and Chrysler employees might want to grab payday loans to help with finding a new job.
No wonder GM wants another $20 billion – they’re becoming a toxic asset. If they get a second bailout, I really hope they can not only stay afloat but return to some sort of profitability, because there goes one of the largest companies in America, and I hope they don’t drag us all down with them.
Things are expected to get worse before it starts to settle down.