For the past few weeks, I have diverged from HBs to job losses. The two go hand in hand. No Job no house.
I estimate about 10 million jobs were created between 2001 and 2007 as a direct/indirect result of credit creation. With credit contracting, those jobs are now being cut. If you understand the problem, the cuts will grow parabolicly month by month.
A few months ago we were hearing companies laying off 500 to 1000 workers per round. Today we saw ATT get rid of 5000 and Citi shed 10,000....those are just two, there were more.
In a few more months, we will likley add a zero to the above numbers.
The following is from today's LA Times:
By Marc Lifsher, Los Angeles Times Staff Writer
12:22 PM PDT, April 18, 2008 SACRAMENTO -- California's unemployment rate rose by a whopping half a percentage point in March, reaching 6.2% as a weakening economy shed jobs in the ailing construction and financial activities sectors. In all, 1.13 million were unemployed.
The Economic Development Department reported that March's unemployment was the highest since July 2004, when the rate was also 6.2%.
Unemployment is up 1.2% from a year ago, with 229,000 more Californians looking for work.
'This is a huge increase,' a chief economist for the state says of half-point rise in March figures. Losses are greatest in the construction, financial services sectors.
THINK ABOUT IT FOR A SECOND, 1.2% IN A YEAR, BUT 1/2% JUST FROM LAST MONTH. Just wait a few more months and see what the rate will be.