Wednesday, October 22, 2008

Over 80% of States Reporting Job Losses

The Labor Department reported that 41 states and the District of Columbia each reported job losses for both the private sector and government jobs. Earlier this month, the Labor Department reported that net payrolls nationwide declined by 159,000 in September, the ninth straight month the U.S. economy has lost jobs. The numbers released Tuesday underline the grim condition of the nation's job market, and are a sign of a recession. Unemployment will likely accelerate, perhaps reaching 7.7% by the end of the year.

Rising unemployment rates could lead to even higher foreclosure rates in 2009, which will keep the housing market down. On Tuesday the chief economist of the Mortgage Bankers Association said, "While home-price declines have been driving foreclosure starts recently, mounting job losses could add another layer of stress." This means that 2009 could look even worse than 2008 which was a record year for mortgage foreclosures.

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