According to a recent article, the economic recovery lost momentum in the spring and growth slowed to a 2.4% pace. That rate is not fast enough to drive down unemployment. The unemployment rate in our country is nearly a mind boggling 10%. That makes it very difficult for anyone to find a job. Over-qualified employees are not able to find work because the employer knows that he/she can get the position filled at a lower rate.
Under-qualified workers cannot find work because there is simply none available. Those with a nominal amount of experience and education are able to find work but are being paid lower rates than they previously would have encountered.
The result: An extremely scary look at the potential disappearance of the middle class in our country, something that 3rd world countries look at every day.
Another ramification is that people are having to explore their options to survive financially. Those who have lost a job are typically no longer able to pay their unsecured debts and keep a roof over their family’s head. If they lose their job and have debt, then it is often advisable to explore their options under Chapter 7 or Chapter 13 of the Bankruptcy Code.