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Job Losses Stunt Consumer Spending

Posted By admin || 13-May-2009

According to an article in the Dallas Morning News, retails sales showed a disappointing decline for the second month straight in Aprils as the nation's job losses continues to grow.

The article said:

The Commerce Department said Wednesday that retail sales fell 0.4 percent last month. Many economists had expected a flat reading, and the April weakness followed a 1.3 percent drop in March that was worse than first estimated.

Since consumer spending comprises nearly 70 percent of all economic activity, this drop in sales has many economists worried that the economic turnaround may be a long time coming.  In a sign that their fears may be justified the Labor Department also announced that the unemployment rate rose to 8.9 percent as the country was hit with another 539,000 job losses in April.  In total, over 13.7 million people are unemployed nationwide.

The more job losses we suffer, the less even those with a job want to spend. And although reduced spending may be a wise move when faced with a possible job loss, it's often not enough for those who have large amounts of debt to service.  Unfortunately, debt does not disappear after a job loss.  If you are facing a job loss and/or prolonged unemployment, you may want to consider discharging your debt in bankruptcy.  To find out if bankruptcy is a good option for you, contact a Dallas-Fort Worth bankruptcy attorney.

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