Even with the recent federal aid totaling $26 billion, it is projected that this massive sum of money infusing the economy will not save enough jobs to slow the progression and momentum of an already failing job market.
The sectors expected to see the worst of the layoffs are state, local and private contractors that work in government-dependent businesses.
Survey shows Americans worry about job cuts
In a recent study posted on Gallup.com, "U.S workers' worries about job and pay cutbacks have eased slightly since 2009, but continue to be high compared with prior years. Roughly one in four workers -- down from 31 percent in 2009, but up from 15 percent in 2008 -- is worried about being laid off in the near future," lending some credence to the increasing levels of fear among Americans that more layoffs are imminent.
Additionally, President Obama is facing his lowest job approval ratings yet, further showing that Americans worry extensively and often about the security of the nation's job market and who is leading the charge to fix it. "His 44 percent average for the week of August 9-15 and latest three-day approval average of 42 percent are both the lowest of his presidency to date," cites Gallup.com.
Struggling state economies
At the root of this problem are two factors: struggling state economies and the issue of retirement as it relates to Social Security. Federal Reserve Chairman Ben Bernanke told moneynews.com just last week that, "cuts in state and local spending and jobs were helping to slow the economic recovery, " meaning that the crises of many state economies poses a serious threat to the economy.
When states are forced to cut services and jobs and increase mandatory furlough days among their employees, it affects not only the communities within that state, but the economy of the nation as a whole as fewer local businesses get work and consumers feel the effects of a strained local economy by not spending as much money as before. Less money circulating in the local economies also leaves many local governments with serious budget deficits, For instance, California has not only already made a ten percent cut to its Medicaid reimbursement rate, but is also considering a sales tax increase to offset a $17 billion state budget deficit
Social Security and retirement
As unemployment rises so does the number of people forced to take early retirement at the age of 62. In 2009 more people than ever before requested early retirement funds through The Social Security Administration, even though those payments are significantly reduced due to the early nature of the request. While some people have no choice but to retire early for whatever reason -- cannot find work, pushed out by younger people, job is outsourced for cheaper labor overseas etc.-- others are forced to work beyond the age of retirement because they lack the financial resources and stability to leave the work force at the designated age of retirement, 65. According to www.examiner.com, "a report from the Social Security program has shown that disability and pension payments will exceed revenue in 2011."
Dailyjobcuts.com uses a basic format to list what companies are laying off employees (where and how many), but on the upside they also have a button that you can click on to see who IS hiring these days, and that is the important thing to focus on.
