Unemployment Reaches New Highs

While the U.S. lost 106,000 jobs since January, employers have added a net 52,000 temporary jobs since then.  But many economists are saying that the increase in temporary jobs may not be a sign that there is a jobs recovery on the horizon.

“I think temporary hiring is less useful a signal than it used to be,” says John Silvia, chief economist at Wells Fargo. “Companies aren’t testing the waters by turning to temporary firms. They just want part-time workers.”

Unemployed workers desperate for a paycheck grasp onto temporary jobs that may drag on for weeks, months and years; but fail to pay a living wage or offer the benefits and security of full-time regular employment.  The simultaneous shedding of jobs and the rise in employing temporary workers may further create an environment of insecurity which may fuel the foreclosure crisis and cause a sharp increase in bankruptcy filings.  Workers who are stuck in temporary jobs feel less secure about their future so they may spend less, fall into foreclosure, or may even decide to file bankruptcy because they are not sure how long their temporary job may last.  And who can blame them?  Filing bankruptcy after remaining unemployed or stagnant in a temporary job may be a wise decision.  Temporary employment cannot provide the stability one needs to avoid foreclosure and bankruptcy on a long-term basis.  Many workers who remain unemployed or working temporary jobs for a year or more find that their financial situation becomes more unstable with each day.  Even if your temporary job provides living wage, it can be terminated at anytime which can make you more vulnerable financially.  If you have worked as a temp or have remained unemployed for an extended period of time, it may be time to consider bankruptcy.


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