RSS FeedClaims for unemployment benefits took a significant jump early this month, as experts believe the temporary lull over the holidays was a just a blip in the overall pattern of high unemployment.
And, as more people appear to be jobless to start the new year, bankruptcy filings may grow as well, as consumers look to shed debts they accrued over the holiday season.
The statistics paint a picture of an economy that continues to sputter along, with a few signs of fragile improvement.
According to a recent report in USA Today, the unemployment figures for the first few weeks of January are not particularly heartening:
- Jump in applications. Last week, the number of applications for federal unemployment benefits jumped by 24,000, to a seasonally adjusted figure of 399,000 applications, which is the highest such number in three weeks, according to the Labor Department.
- No more decline. This jump in applications was a bit unsettling because they had fallen steadily for three months, bringing the total number of people receiving unemployment benefits to the lowest amount in three years.
- Magic number. Sources indicate that 375,000 applications is the magic number: when total unemployment requests fall under this figure, hiring is usually strong enough to begin reducing the overall unemployment rate.
Experts claim that the rise in unemployment applications after the holidays was entirely expected, due to the large number of seasonal holiday workers who lose their job when the calendar turns to a new year.
Nevertheless, the Labor Department tries to account for the volatility of seasonal workers when it compiles its figures, and it claims that the rising numbers reflect more than a simple seasonal adjustment.
While economists predict that the U.S. will add almost 2 million workers this year, the country still has a long way to go before it recovers the 8.7 million jobs that were lost in the recent recession.
Until the unemployment rate reaches a more reasonable number, consumers will continue to struggle with the debts, especially credit card debt and medical debt.
Fortunately, though, the federal government offers more sources of aid than just unemployment benefits. Personal bankruptcy, for example, which takes place in a federal court, may offer a path to financial relief for individuals with large debt burdens.
In Chapter 7 bankruptcy, filers may be able to shed some or all of their unsecured debts, depending on their unique financial situation and income.
For filers who are looking to keep a car or home and pay off their debts at a more reasonable rate, Chapter 13 may offer a better solution.
Bankruptcy laws, though, vary by state. To learn more about the benefits of bankruptcy in your area, contact a local bankruptcy lawyer today.
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