Unemployment sweeps nation

NEW YORK (CNNMoney.com) -- Unemployment spiked in all states nationwide in December for the first time as companies shed hundreds of thousands of positions, federal data released Tuesday shows.

All 50 states and the District of Columbia recorded unemployment rate increases compared with the previous month and the year prior period, the Bureau of Labor Statistics of the U.S. Department of Labor reported.

The report marked the first time every state recorded a rise in monthly unemployment since the bureau began keeping such records in 1976.

Michigan and Rhode Island once again led the nation with the highest jobless rates at 10.6% and 10% respectively. Rhode Island's rate is the highest in more than three decades.

The national unemployment rate rose to 7.2% in December, up from 6.8% the previous month and from 4.9% a year earlier.

More pain is in store in January. On Monday alone, companies announced more than 71,000 job cuts.

President Obama is pushing for quick passage of an $825 billion package it hopes will stimulate the economy and promote job growth.

"Just this week, we saw more people file for unemployment than at any time in the last 26 years, and experts agree that if nothing is done, the unemployment rate could reach double digits," Obama said Saturday. "If we do not act boldly and swiftly, a bad situation could become dramatically worse."

However, some critics say the bill will not do enough to reverse the spike in unemployment.

"There is too much wasteful spending and the plan in our view won't do what it is intended to do -- create jobs and preserve jobs in America," said House Minority Leader John Boehner, R-Ohio.

Unemployment trust funds suffer
Swiftly rising unemployment claims is wreaking havoc on state unemployment trust funds. These accounts, which are funded by taxes levied on employers, are running dry.

Four more state funds -- Indiana, New York, South Carolina and Ohio -- have become insolvent in the last four months, according to a forthcoming report from the National Employment Law Project. They join Michigan in borrow from the federal government to continue paying benefits.

Another 13 states are at "major risk" of insolvency, up from eight in September, according to the advocacy group. These states have eight months or less of average monthly benefits in their trust funds. These include: New Jersey, California, Kentucky, Missouri, Wisconsin, North Carolina, Rhode Island, Arkansas, Pennsylvania, Idaho, Minnesota, Connecticut and Illinois.

Some experts predict up to 30 states could see their funds become insolvent this year if the recession deepens.

While the jobless in these states will continue to get benefits, there are serious ramifications to having insolvent funds. State legislatures must bring the funds back into balance, which means either cutting benefits or raising taxes on employers. Neither are palatable during a recession.

Companies aren't as quick to hire new workers if they have to pay higher unemployment taxes on each one, experts said.

"It does tend to slow down their rehiring," said Richard Hobbie, executive director of the National Association of State Workforce Agencies

They announced layoffs at my company this morning. I made the cut so I'm lucky, but others have not been so lucky, obviously.

I don't know how many yet.

At least I feel confident everything was done before this point to avoid lay-offs if at all possible, including my company announcing no pay increases for all senior management and execs this year.

Still, it's a yucky, yucky day in the office today.

I don't believe the U.S. has hit rock bottom yet.
It is NOT a pretty picture.

Graycap23 said:

Agreed. I think things are going to get a lot worse before they get better, sadly.

I think Americans, in general, have become almost completely pussified. Does it suck losing your job? Damn straight, it does. But it has been so much worse in the past. Double-digit jobless rates nationwide in the late 70s. Hell, at the height of the Great Depression, unemployment was around 25% - compared with just over 7% now.

The coping skills of average Americans are just completely in the tank. They face a little adversity and go completely to pieces. They think the government can (and should) take care of everything. It can't.

Of course, when you have a home you could barely afford with a job and approximately a gazillion dollars in credit card debt, you do have a problem. A problem that will only get worse when your taxes go up to pay for all that new "stimulus."

Genesia said:

The more "stuff" folks have available to them, the less they're willing to do without....

reneGade20 said:

Egg-friggin'-zactly.

I'm guessing my Union job at UPS is pretty safe. I work at an airport location so we've always got shit flying in to move around. But U NEVER know.

My company gave most people at least a 3% raise.

Graycap23 said:

Today, a brotha in Wilmington, Ca. just took out his WHOLE FAMILY (Wife, 3 daughters, and 2 sons) in a murder-suicide over possibly losing his job. I'd say that's rock bottom enough.

Genesia said:

Don't forget the culture your party cultivated in the time of tragedy and war. spend spend spend. Now I remember why I can't stand you anyone not just your scapegoats, would suffer with job losses.
[Edited 1/27/09 15:25pm]

The entire country is feeling what SE Michigan has been feeling for a few years now.

dreamfactory313 said:

Where does it end?

To quote Shirley from an episode of What's Happenin'...
"It's rough out there! Worse than that! It's rough out there!"

MuthaFunka said:

I just read the letter he faxed to KABC in L.A....terrible story!

reneGade20 said:

Way out, ain't he? Unblievable.

MuthaFunka said:

When my times were tough, killing the brood wasn't even an option....shit never came into my mind that I know of.....me and wifey had shit jobs in a GOOD economy in '96, trying to raise 2 young ones...I swallowed my pride and rejoined the military, after damned near swearing a blood oath that I'd never come back in....so like I said on the other thread, there's always something you can do.....

SupaFunkyOrgangrinderSexy said:

So...Republicans went to the homes of average citizens...held guns to their heads...and forced them to go into debt. Right.

Your arguments (and I use that term loosely) get more ludicrous by the day.

Genesia said:

Again, your party cultivated this debt culture. spend spend spend! That was the response to 9/11 remember. But of course you wouldn't because you're a fraud.

SupaFunkyOrgangrinderSexy said:

First of all, it isn't my party. But pardon anyone in any party for giving people credit for having the sense God gave lettuce.

Of course, now that Democrats are in power, they'll just tax you out of everything you have left and spend it all for you - believing that the average person is too stupid to take care of him- or herself.

reneGade20 said:

You just wonder what makes a man do that? I mean, even if you have to send the kids to live with relatives or friends, why take THEM out?

Genesia said:

I don't believe your part of any rational party That said, I'm not one who gives a shit about the joneses. I think it's ridiculous the way this culture is trying to outdo each other and put on appearnaces. Just ridiculous. But conservatives ideals have been in full swing since Reagan and look where we are.

FAIL. As much as you detest the government, conservative ideals has simply made it more powerful and the only alternative to the failing economy. Besides, it's time for the rich to pay their fair share in this country and I won't shed one goddamn tear on their behalf. If you want to that's fine but you'll have to get your own kleenex as this lettucehead doesn't just give stuff away for free

SupaFunkyOrgangrinderSexy said:

Spend spend spend is not a hallmark of conservatism, dingdong. True conservatives aren't about spending. That's why they're called conservatives.

It's Democrats who are the free spenders. Why do you think they're pushing for all the "stimulus" that isn't? They're the ones who are about spending. And it's spending that doesn't actually produce anything - except bureaucracy.

We got an email this morning from the President at my university. No raises for at least 3-5 years. This bums me out because I don't make the best salary and living expenses are rising. I cannot believe the price of food these days!

I am, however, fortunate to have a job. I just have to put things in perspective and change the way I live for a while.

Genesia said:

WAIT WAIT WAIT!!! as bad as shit is right now, liberal/conservative finger pointing needs to friggin' stop....both parties, with all of their power elite members, are as responsible for creating this economic mess as the general public is for not holding these jackasses responsible for what they do and, more importantly, don't do....which is aggressively represent the PEOPLE, not the special interests.....