Housing Slump Tied to Lower Worker Mobility, Higher Unemployment
Online, October 28, 2010 (Newswire.com) - The ability to relocate for employment, which helped the U.S. recover quickly after previous deep recessions, has become a victim of the housing slump. About 12.5 percent of Americans moved in the year ended March 2009, the second-lowest ever, according to an estimate by the Brookings Institution, a conservative nonprofit public policy "think-tank." 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 personal loans in order to meet their financial needs.
The U.S. economy shrank 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.
According to a survey conducted by First American CoreLogic, 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.
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 personal loans.
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 personal loans in order to finance their own version of the economic recovery. See if a personal loan or small business loan up to $250,000 will help.
