The Chronically Unemployed Find it Harder to Return to Work

According to a recent CBS News story, not only is the unemployment rate hovering above 9%, the longer a worker is unemployed, the harder it may be for them to find work.

According to CBS News correspondent Ben Tracy the road back to gainful employment, even if it improves statistically for the U.S., may not provide much relief for the chronically unemployed. The chronically employed, who have large gaps in their resume, may have difficulty finding work, and the bigger the employment gaps, the more explanation employers may want.

According to reports, about 6.2 million Americans, 45.1 percent of all unemployed workers in this country, have been jobless for more than six months. This is a higher percentage of unemployment than America faced in the Great Depression.

Economists point out that the economy is mostly to blame, but certain types of industrial and manufacturing jobs may not return, even if the economy improves. Jobs have been exported overseas in increasing numbers, and many experts say that the unemployed worker who worked in these industries need to find a job, but they also need to began taking several steps to find a new career.

According to Jerry Nickelsburg, Sr., an economist at UCLA, “That person has to discover what field they want to work in, become trained and find a job in that field.” In this competitive job market, workers cannot wait around and wait for the job to come to them, some of these jobs are not coming back.

The news report also points out that many of the unemployed have not felt the full impact of joblessness but many will as their long-term unemployment benefits expire. Unemployment benefits may have been providing much needed income for food and clothing, but the unemployed should also use the money for new job training.

There is an emotional toll for the unemployed as well. Paul Taylor of the Pew Research Center agrees, “If you have been unemployed for 6 months or more, it takes a much deeper toll – not just on your personal finances and your career prospects – but on your emotional well-being.”

Filing for Bankruptcy

Joblessness, the inability to pay your bills, sky-rocketing debt or home foreclosure – all of these can cause bankruptcy. If you have lost your job or if you have been unemployed for many months, you may be struggling to pay your bills. If you owned a home you may be facing home foreclosure.

Finding a job and getting your financial footing is of course the best course of action, but if you are taking the appropriate steps and cannot regain your financial footing, you may need an immediate solution.

Filing for Chapter 13 Bankruptcy may allow you to repay your creditors with a 3 to 5 year debt repayment plan. Filing for Chapter 7 Bankruptcy may allow you to discharge certain unsecured debts.

Filing for bankruptcy is not the right solution for everyone, and there can be drastic financial consequences. Do not file for bankruptcy without first consulting with a bankruptcy lawyer who understands bankruptcy law and can help review your financial situation and determine if either Chapter 7 or Chapter 13 Bankruptcy is right for you.

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Beth

Beth L. is a content writer for Better Bankruptcy. Good content and information is one of many methods we utilize to bring you the answers you need.