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Auto Industry Job Losses Push Unemployment Upwards

Posted By admin || 14-May-2009

According to an article in the Dallas Morning News, the number of job losses rose and pushed the number of new unemployment benefits claims up to 637,000. Currently the new nationwide unemployment rate at 8.9 percent.

The article said:

A department analyst said most of the increase was due to auto layoffs. Economists estimate Chrysler LLC has laid off 27,000 workers in the wake of its April 30 bankruptcy filing. General Motors Corp. has said it will temporarily shut 13 factories beginning later this month through July, potentially affecting 25,000 workers.

These job losses, the Chrysler bankruptcy and a possible GM bankruptcy are expected to cause an additional 100,000 job losses this year.  And with millions of Americans already unemployed, we can expect to see more homeowners succumb to foreclosure because of their inability to find new unemployment.

Unemployment will only last so long and pay for so much for those who have faced a job loss.  Eventually the unemployment benefits checks will stop and many unemployed Americans will be left alone juggling mortgage payments, credit card bills and their essential everyday bills.

As we have noted in previous posts, some creditors are already getting aggressive with debtors by raising rates and closing the credit lines of those who are deemed "risky."  This can be a huge strain on those who depend on credit cards and equity lines of credit to pay their bills--and unfortunately that's a lot of people.

For those who have faced a job loss and are experiencing an extended period of unemployment, don't delay contacting with a bankruptcy attorney to find out if you can discharge your debts bankruptcy.  Bankruptcy may be the tool you need to survive these tough times.

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