Higher Unemployment Rates Affected By Historic Worker Inability to Relocate

Online, November 21, 2010 (Newswire.com) - "One of the hallmarks of America's labor market is a high level of mobility," said Joseph Stiglitz, a Nobel Prize-winning economist, in a Jan. 3 interview in Atlanta, where he was speaking to an economics conference.

The willingness of workers to move has been a major factor in the job-market's recovery after the major recessions ending in March 1975 and November 1982. The average unemployment rate fell 1.6% to 7.4% in May 1976 from a year earlier and dropped 2.5% to 8.3% in December 1983 from the previous December. According to the Brookings Institution, that statistic has changed in the current recession, which began in 2007. Out-of-state moves, usually associated with job changes, remained at a record low 1.6 percent of the population for a second year. Some applicants have turned to signature loans in order to meet their financial needs. The total U.S. economy shrunk by 3.8% over the year ending June, 2009 and unemployment reached a 26-year high of 10.2% in October 2009 before dropping to 10% in November. The average rate of unemployment currently stands at 9.7% nationwide, according to recent estimates by the U.S. Department of labor.

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Almost a quarter (10.7 million homes) of all U.S. homes under mortgage loans were worth less than the debt owed on them near the end of last year and an additional 2.3 million mortgages were approaching "negative equity" as loan defaults continue to occur. And, while some analysts contend that the recession has already ended, a December survey of 46 economists predicted that unemployment will fall only 0.8 percentage point to an average of 9.2 percent in 2011. Since in many cases, spending money and stretching already tight budgets in order to achieve employment is a difficult proposition, some job-seekers are turning to signature loans in order to finance their own version of the economic recovery. See if a signature loan up to $250,000 will help.

Although better economic news can mean better prospects for those who are seeking new positions, many of the new positions will require an outlay of cash in the form of relocation costs. Many companies have scaled back programs that reimbursed new hires for such expenses, forcing applicants to finance their own expenses by using savings or obtaining signature loans.