According to an article in the Star-Telegram, the unemployment rate in Dallas-Fort Worth and the surrounding area rose to 7.1 percent in May. Nationally, the unemployment rate has inched up to 9.4 percent, only a few percentage points away from the dreaded 10 percent unemployment rated predicted by analysts.
The article said:
"Texas ' nonfarm payroll jobs fell by 24,700 in May compared to April, the Commission reported. In the past 12 months, Texas has recorded a net job loss of 222,600 jobs. The U.S. has lost 5.4 million jobs in the past year. Few industries were spared in May as Texas employers continued to report job losses," said Tom Pauken, Texas Workforce Commission chairman, in a statement. "Continued unemployment claims increased in Texas as well."
Construction, housing and manufacturing have taken really hard hits since the downturn, causing many Texans to face job losses. As more Texas companies face bankruptcy or implement job losses Texas may be face another round of unexpected job losses, especially coming from the retail and commercial real estate industries.
Unfortunately, many unemployed workers are remaining unemployed well beyond the 26 week benefit limit of unemployment insurance, which may have catastrophic effects on the wider economy. Fortunately, unemployed workers who have exhausted their unemployment insurance benefits can apply to receive an extension under the emergency plan, if they have not find work.
But what will happen if millions of workers exhaust the limits of the emergency unemployment benefits extension and still don't find work? We could see another surge of foreclosures and bankruptcies as people financially succumb to overwhelming debt and expenses without any income.