On Friday, the Labor Department released a report stating that employers slashed more than 533,000 jobs during November sending the unemployment rate skyrocketing to 6.7 percent. That’s the highest number of job losses in 34 years. The current unemployment rate does not include over 422,000 people who experienced job losses; but gave up looking for employment. Last year the jobless rate was only 4.7 percent.
This number of job losses is extremely alarming! It’s proof that many companies are reacting fast and without hesitation to the troubles facing the economy by shedding jobs in large numbers. Also, many homeowners who have experienced job losses are joining the ranks of those facing imminent foreclosure. According to the Mortgage Bankers Association, as of September 2008, 1 out of every 10 American homeowners are at least one month behind on their mortgage payments or already facing foreclosure. We can expect to see large numbers of homeowners and even renters considering bankruptcy in the coming months as it becomes nearly impossible to find new employment in a reasonable amount of time.