Government cash advances hasn't really assisted unemployment

The recession, which is supposedly over, took a toll on many sectors of the economy. Lots of individuals, as a result, have lost their jobs because of it. Huge cash advancements were drawn for government stimulus programs, with the idea that jobs would be created and unemployment reduced. Overall, it worked for a little while, however has only gotten worse in the meantime. There were27 states that had joblessness rates rise within the month of August. There were 13 states saw unemployment decrease. Also, 10 states and Washington D.C. had no change. Granted, recessions technically end when contractions cease, but current conditions certainly make it seem as though it isn’t over.

Boost in unemployment over August

The joblessness level has shot through the roof over the last month. There were, according to CNN, 27 states which had a rise in joblessness in August. The highest joblessness rate in the nation is in Nevada. Nevada sits at a dismal 14.4 percent unemployment. Michigan is behind Nevada, with a joblessness level of 13.1 percent. California may be the third highest, with 12.4 percent joblessness. However, it is not exactly a surprise. These have been the hardest hit states in many ways in the recession. It seems emergency loans that went to these states to stimulate job growth, such as the auto bailout for Detroit, have not assisted as much as was hoped.

It had been the fault of the Census

The end of the 2010 Census had a heavy hand in the boost in unemployment, according to USA Today. The Census employed 114,000 individuals on a short-term basis. Jobs are slowly starting to be added by private employers. Having a pay day again must come as a relief to the 67,000 new jobs added by private employers. This was not unforeseen. It was anticipated the Census concluding would add to unemployment, as there isn’t really enough instant money to hire all the workers that were laid off back to the payrolls.

Rebound starting

There is evidence the decline of economic activity has stopped, and thus the recession is technically over. That said, unemployment is nevertheless high, and lending isn’t really happening as much as it maybe should be. It becomes difficult to reconcile that with the idea the recession is over.

Additional reading

USA Today

usatoday.com/money/economy/2010-09-21-unemployment-rate-state_N.htm

CNN

money.cnn.com/2010/09/21/news/economy/state_unemployment/index.htm