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Sunday, January 11, 2009

Record Job Losses

From the Hoss's Mouth

The US Labor department report issued Friday January 09, 2009 indicated a total of 2,590,000 Americans lost their jobs in 2008.

What should be of serious concern to the readers of Hoss Cents Free Financial Money Magazine is the fact 1.9 million of these lost job losses occurred in the last four months of the year,
524,000 of which occurred in December 2008.

This is a clear indication (not that we needed any more) the economy is in a financial death spiral. Not since 1945 have job losses been so numerous.

The report also indicated the under-employment rate (those workers with part time or no jobs, that have stopped looking for a job) rose to a total of 8 million people. That is the highest since 1955, which incidentally is the first year such records were kept.

Unless something is done soon, the recession could continue for a considerable number of years. People will not have money to buy homes, new cars, TV's or even feed their families. Not only will they not have money, but being unemployed, they will not qualify for loans. That is, if the banks have any money to loan.


Job Losses
Fortunately, President Elect Obama recognizes the seriousness of the problem and, as stated in the previous edition of Hoss Cents Free Financial Money Magazine (Financial Crisis Deepens), he and his economic team are working towards the development of an American Recovery and Reinvestment Plan. The goals of this plan are to lay a firm foundation for growth and job creation by making major investments in the economy.

Two members of Obama's team, Dr. Christina Rower and Dr. Jared Bernstein, did a comprehensive analysis of this plan and estimate it will save or create 3 to 4 million jobs, 90% in the private sector and 10% in the public sector.

The recovery from this recession will not be easy. When Bill Clinton took office, the jobless rate was similar to today's unemployment numbers, but the big difference is that back then the economy was not in a free fall.

The Hoss sincerely hopes that President Elect Obama's plan works, that the economy recovers and the unemployment rate decreases. In any event, it is gratifying to see the President Elect tackling the problem head on and at least developing a plan to try and create jobs.

Stay on track,

The Hoss

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