According to an article in the Star-Telegram, America has experienced 6.7 million job losses since the recession began in December 2007. But the most recent unemployment report released revealed that job losses slowed to 247,000 in July and the unemployment rate dropped to 9.4 percent. However, the new unemployment rate does not account for workers who have given up looking or who have taken part-time work.
The article said:
“All told, there were 14.5 million out of work in July. If laid-off workers who have given up looking for new jobs or have settled for part-time work are included the unemployment rate would have been 16.3 percent in July.”
The new unemployment rate and job loss number also fails to represent workers who don’t qualify for unemployment benefits and/or who do not work in traditional employment (i.e. self-employed, contractors etc.) Those workers who can’t benefit from unemployment insurance are often the most vulnerable in this type of economic environment. That’s why each worker who faces a job loss must honestly assess his/her situation and determine how long they can pay for their living expenses, (including debts) with no income. Depending on their circumstances, filing bankruptcy may be the wisest decision at a time when unemployment is becoming long-term.