Any Jobs Out There? Anyone Anyone
As this blog is written, unemployment is being reported at something less than 5%.
But if you are an independent contractor, you don't count. You think there are more independent contractors today than 10 years ago.
If you have been off work for 6 months, you don't count. Anyone you know?
Macy's just released over 2000. Bear Sterns just notified that 10% it its workforce will be hitting the road. Home construction is down 50%(housing was a BIG component of job creation over the past five years). The Governator just notified that his state MUST cut 10% of its budget accross the board...and he runs a very very big state.
Retailers are reporting very negative same store sales and closing thousands of stores around the country. The big boys, WalMart, Target, and HomeDepot are delaying new store openings.
Mortgage companies have shut down by the thousands over the past year. Real Estate agents are exiting the profession by the tens of thousands. Auto manufacturers are contracting. So are the suppliers to the manufacturers. Auto Dealers are going out of business. Truckers are just shutting down their equipment. Commercial vacancy rates are rising forcing landlords to cut back. Major construction projects are defaulting midstream idling workers. Restaurant sales slowing forcing cutbacks.
When the above people are let go, their spending power deminishes hurting other businesses and tax revenues in their respective communities forcing even more layoffs. Just as growth creates more growth, contraction is like dominos falling causing other dominos to fall.
Wages stagnant, costs skyrocketing, earnings evaporating, and now the layoffs are beginning for business struggling to preserve margins and for governments trying not to dig too deep a hole.
If just 10% of the current workers are released, unemployment will skyrocket to 15%. What if 15% of the current workforce loses their jobs? Now, how much will home prices fall to be affordable?
Is anyone thinking out there anymore?
Sweetie, why is the water rising so high on the beach?