Unemployment benefits application related to hurricane Sandy has consistently decreased since the third week of November according to reports. Labor Department has released figures showing a decline from 416,000 jobless claims on the first week after the disastrous hurricane to 393,000 jobless claims in the last week of November.
Many economy experts state that it will still take few more weeks before these claims return to pre-storm figures. Before the hurricane, there were about 370, 000 unemployment claims and it looks like the figure will hover around this number in the next couple of months or so.
For the unemployed, applying for debit has been one of the major ways to go about their every day spending. Many jobless Americans today rely on bad credit loans to cover for their expenses. While this is generally not advisable, there is not much of a choice for the unemployed with bad credit score to begin with.
The spiral of debit is terrible for those who do not have regular income. Now that application processes usually involve credit checks, many Americans with bad credit score find themselves in deep financial trouble. Without job, there are limited ways to pay for debit. As a result, they get low credit score which becomes a problem when it comes to applying for jobs.
The good news is that the US Labor market has recently shown signs of improvement in the last couple of months. Reports show an increase in the number of vacancies as well as hiring rates. More importantly, the reports also claim a decrease in the number of job cuts.
However, the impact of the hurricane especially to the affected areas will be significant in the sense that spike in the loss of jobs leads to the lowest gain of payrolls for the whole year. A new spike in unemployment is also predicted on the first week of December due to the closing of some companies. For instance, the makers of Wonder Bread and Twinkies has recently filed for bankruptcy and is set to put 15,000 of its 18,500 workers to unemployment.
For the mean time, there are bad credit loans that can pay for small expenses. However, payments have to be made on time of more financial problems will ensue in the long run. The rise and fall of the employment rate calls to mind different concerns in the economy and finances especially to those who are at the brink of losing their jobs.