Friday, October 23, 2009

The Unemployment Sinkhole and the Way Out

Unemployment rates by state for September 2009 from the Bureau of Labor Statistics Geographic Profile of Employment and Unemployment, highest to lowest, and population projections for 2010 from the U.S. Census Bureau, "Table A1:Interim Projections of the Total Population for the United States and States: April 1, 2000 to July 1, 2030; published April 21, 2005.

Michigan - 15.3% - 10,429,000
Nevada - 13.3% - 2,691,000
Rhode Island - 13.0% - 1,117,000
California - 12.2% - 38,067,000
South Carolina - 11.6% - 4,447,000
Oregon - 11.5% - 3,791,000
District of Columbia - 11.4% - 530,000
Florida - 11.0% - 19,252,000
Kentucky - 10.9% - 4,265,000
North Carolina - 10.8% - 9,346,000
Alabama - 10.7% - 4,596,000
Illinois - 10.5% - 12,917,000
Tennessee - 10.5% - 6,231,000
Georgia - 10.1% - 9,589,000
Ohio - 10.1% - 11,576,000
Indiana - 10.0% - 6,392,000
New Jersey - 9.8% - 9,018,000
Missouri - 9.5% - 5,922,000
Massachusetts - 9.3% - 6,649,000
Washington - 9.3% - 6,542,000
Mississippi - 9.2% - 2,971,000
Arizona - 9.1% - 6,637,000
Idaho - 8.9% - 1,517,000
New York - 8.9% - 19,444,000
West Virginia - 8.9% - 1,829,000
Pennsylvania - 8.8% - 12,584,000
Maine - 8.5% - 1,357,000
Alaska - 8.4% - 694,000
Connecticut - 8.4% - 3,577,000
Delaware - 8.3% - 884,000
Wisconsin - 8.3% - 5,727,000
Texas - 8.2% - 24,649,000
New Mexico - 7.7% - 1,980,000
Louisiana - 7.4% - 4,613,000
Minnesota - 7.3% - 5,421,000
Hawaii - 7.2% - 1,341,000
Maryland - 7.2% - 5,905,000
New Hampshire - 7.2% - 1,386,000
Arkansas - 7.1% - 2,875,000
Colorado - 7.0% - 4,832,000
Kansas - 6.9% - 2,805,000
Wyoming - 6.8% - 520,000
Iowa - 6.7% - 3,010,000
Montana - 6.7% - 969,000
Oklahoma - 6.7% - 3,592,000
Virginia - 6.7% - 8,010,000
Vermont - 6.6% - 653,000
Utah - 6.2% - 2,595,000
Nebraska - 4.9% - 1,769,000
South Dakota - 4.8% - 786,000
North Dakota - 4.2% - 637,000

This blog from Atlanta Fed (http://macroblog.typepad.com/macroblog/) discusses some of the economic research and data involved which include permanent loss of jobs, giving existing employees more hours or hiring freelancers, no longer filing because they have run out of unemployment and tightening of lending from the banks which has put many small businesses out of business.

I myself have been out of work and drawing unemployment, off and on for seven months in 2009, and it has just run out so I have personal experience of this phenomenon. In the course of this time, I have fallen behind on bills, caught up when I got work, only to fall behind again when the work disappeared. I have lost my health insurance with Freelancers Union and cannot find enough work to requalify for eligibility for the group rate. I have become very familiar with payment plans. I am attempting to work with the bank that has placed two investment properties on preforeclosure status and that's a whole other horrific story for another moment. I have felt discouraged, ashamed, fearful and depressed. Looking at the numbers, I know I am not alone - that there are many others in similar situations.

My feeling is that, first of all, the unemployment numbers are much higher than portrayed and secondly, the biggest deterrent to the recovery of this economy is low morale and loss of self-esteem - in short, just giving up. I hear people complaining that Obama has not delivered on his promises but the problems are much bigger than any one man, even such an extraordinary one, can solve alone. In my opinion, this crisis provides an opportunity for people to step up and become self-reliant and financially independent. It is a time for us to build businesses, big and small, and pursue passions to make money for ourselves, to stand up individually and together, and be counted on to help solve the problems we face as a nation and a world. Together and united, our range of influence is vast.

Margaret Mead, the famous anthrolopogist said, "A small group of thoughtful people could change the world. Indeed, it's the only thing that ever has."

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