Trends in Unemployment

Staff Writer, Jan 19, 2009

The unemployment rate from 2006-2008 increased.  Different types of communities were hit at a different level.  The biggest jump in unemployment seems to be from communities with affluent, professional residents.  However, the poorer communities which also have more minorities experience more unemployment than other communities.

The poorer communities and those with the bigger numbers of Black and Hispanic residents have the highest overall unemployment rate and the normal median income is lower than most of the rest of the country.  These are also the people who hopefully will first benefit from promises made by President Obama.

The ripple effect is evident as you look at how the affluent neighborhoods and cities/burbs had the highest jump in unemployment but the poorer communities have the highest actual unemployment.  When consumers can’t spend, it hurts retailers, when retailers have to cut back, manufacturers suffer and when manufacturers suffer, it all leads back to the workers (consumers) getting laid off or fired and the whole cycle starts over again.

The areas which look most promising are those that are considered the “breadbasket” of the nation.   Those with a high number of farming communities have been least hit with unemployment.    But, that doesn’t mean it will stay that way.  Remember the ripple effect.  Eventually it will hit the farming community, and hard.  No area of the nation is immune it just shows that the effects of the recession are quicker to reach some communities than others.

In the coming months there will be a new political force taking place.  Congressional seats have been replaced, there will be a new President and this will have a dramatic effect on unemployment and the economy as a whole. What remains to be seen is what exactly that change will be and how soon it will start to have an impact.  A new government cannot negotiate change quickly.  That is especially true in a democratic society.

What is on everyone’s mind is if President Obama and his stimulus package will be enough to start that turn around and if it will even be successful.  Congress will play a part too, but just what part we don’t know yet.  Big business recently has asked for and gotten bailouts and it’s finally hit the fan.  Now, the American citizens need a bailout.  Will they get it?  We’ll have to watch the development of the new Government officials to find that out.  One thing is for certain and that is that things have to change.  There is a fine line between recession and depression.