Labor market reports released this morning indicate that job growth is slowing. According to the Labor Department, the United States added only 54,000 jobs in May. This was less than had been added in the previous 8 months and much less than the 150,000 jobs which were forecasted to be added for the month.
What caused the unexpected job creation slowdown? Economists suspect it was the substantial decrease in private-sector job creation which lead the economist to downgrade their May job growth expectations after the Labor Department issued their report last month. Up until May the pace of hiring had been strong, and it is estimated that a total of 220,000 new jobs had been added.
Economist Diane Swonk of Mesirow Financial offers her opinion to CNBC on Friday, “Let’s face it — no matter how you cut this data, it’s lousy.” And she is right. Regardless of what the President and high ranking government officials say about the economy, the May job reports indicates the U.S. economy may not be in a recovery. Add high gas prices, a depressed housing market, currency uncertainty and a high Federal deficit and many consumers are facing significant financial difficulties.
Ask the White House and they will disagree. Although the jobless rate is above 9%, a top White House Economist Austan Goolsbee believes, ““There are always bumps on the road to recovery, but the overall trajectory of the economy has improved dramatically over the past two years”
Tell that to your friends. It makes you wonder if they have to fill up their tanks with gas which has reached near $4.00, leaving little discretionary income for consumers to buy necessities. Unfortunately, lower consumer spending could increase the sluggishness of the economy, which depends on consumer spending.
Goldman Sachs economist Jan Hatzius wrote in a note Wednesday that with the shift of the Federal Government towards headier matters of debt reduction and National budget concerns, the Federal Government would have less time to focus on economic growth and job creation.
That may leave job creation to the private sector who is already overwhelmed with paying higher prices for raw materials and energy. These increased costs have made it difficult for the private sector to expand their production capabilities and as a result they are hiring fewer workers.
Filing for Bankruptcy Protection
Debt consolidation, home equity loans, low interest credit cards, all of these methods may help you fight off the creditors for awhile, but if you need a serious solution, bankruptcy may be your answer.
Bankruptcy is a complicated financial decision and should not be made without contacting a bankruptcy lawyer. Bankruptcy laws vary by state. Bankruptcy is not right for everyone, and you should not file for bankruptcy without understanding the financial ramifications.
If you do decide to file for bankruptcy protection, under certain conditions you may be able to discharge qualifying unsecured debt (under Chapter 7 Bankruptcy) or repay your unsecured debt over a 3 to 5 year time period (under Chapter 13 Bankruptcy). Often the repayment plan will allow you to repay your debts with much more favorable payment terms.
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