President Obama Gives Hope for Homebuyers and Unemployed

On November 6, 2009, President Obama signed a $24 billion economic stimulus bill which will provide additional unemployment benefits and give tax credits to prospective homebuyers. The bill also includes tax cuts for struggling businesses. The bill was implemented because of the 10.2% unemployment rate which is the highest since 1983. This results in the 4th unemployment benefit extension in the past 18 months.

According to House Majority Leader Steny Hoyer, approximately one third of the 15 million people unemployment have been out of work for at least six months.

The bill will provide another 14 weeks of benefits to those unemployed who have exhausted their benefits or will exhaust them by the end of the year. Unemployed residents who live in states where the jobless rate is 8.5% or higher will get an additional six weeks including Idaho, Pennsylvania, New York, West Virginia, Arizona, Mississippi, Ohio, Illinois, Tennessee, Alabama, Kentucky, South Carolina, Nevada, Rhode Island, California, Florida, and Georgia.

Presidential spokesman Robert Gibbs stated "But I believe -- I think most would tell you -- that the (unemployment) rate is more likely than not to get a little worse before it gets better".

The additional 20 weeks (14 plus six for high states) could provide a maximum of 99 weeks to those residents who live in high unemployment rate states.

The bill will extend the $8,000 first-time homebuyer tax credit which was going to expire at the end of November 2009 but has been extended to June 2010 provided a homebuyer signs a contract by the end of April 2010. The program will also provide a $6,500 tax credit for existing homeowners who buy a new home after living in their current residence for at least five years.

Unemployment Jumps to 10.2%

Although expert state the recession has ended Americans are still feeling the effects in a bad way. The current unemployment rate has reaches 10.2% and hasn't reached above 10% since September 1982 and June 1983. Part-time workers increased the figure to 17.5%.

In Michigan the unemployment rate is 15.3%, in Nevada 13.3%, in Rhode Island 13.3%, in California 12.2%, in Florida 11% and in Georgia 10.1%. In the depression of 1929, 13 million people were unemployed. In 2009, 15.7 million Americans are unemployed.

Today, unfortunately more Americans lack health insurance due to the high costs of medical care and unemployment.

If you work in an unstable economy consider going back to school or moving to a more profitable sector like Information Technology, Healthcare, Government or the Military. If you work as a consultant or contractor and find difficulty getting employment consider applying for a local, state or federal government job which provides more stability and decent benefits including health insurance.
Today more people are in debt because of the economy, unemployment and lack of health care.

On average Americans have approximately $45,000 in debt including credit cards, loan and mortgages. Americans are also saving less which resulted in accumulating more debt and a continual increase in bankruptcy and foreclosure filings.

According to a government surveys suggest that if you get laid off, it's more likely to be for good. On average, those currently unemployed have been out of work about half a year.

Fighting Teens for A Job

According to USA Today, there will be fewer jobs than last summer which was recorded as the worst teen unemployment market in six decades, in a report from the Northeastern University Center for Labor Market Studies.

June-August 2008, 32.7% of teens worked which is a decrease from 45% in 2000, according to seasonally adjusted data from the U.S. Bureau of Labor Statistics. Unemployment for 16-to-19-year-olds was 21.5% in April.

Teen workers are disadvantaged because most employers will hire adults because they feel they require less training. Laid off adults are getting jobs such as: cashiers, babysitter, valet car parker, and amusement park workers.

U.S. theme parks will hire about 500,000 seasonal employees, about the same as last year, according to an estimate from The International Association of Amusement Parks and Attractions.

According to a report by Junior Achievement, 18% of 12-to-17-year-olds are working alongside more adults and former retirees. They are also looking for work in low paying industries such as hospitality and retail. Many overqualified laid off adults are looking for jobs that pay minimum wage, above or below minimum wage such as Summer Lifeguard positions.

Another group affected by the economy are adults in their 20s work are unable to find jobs in the career fields and are forced to work jobs that they did as teenagers. Many teens are looking for summer employment to pay for college or other expenses.

Employers are seeing record numbers of applicants. Workers from previous seasons are coming back to get their old jobs back because there are not as many options available this summer. Many employees are documenting record setting turnouts at job fairs with an increase in applicants and an increase in hopefully job seekers.

Here are 5 tips for teens looking for work:
1. Contact youth organizations
2. Use the internet to search for jobs
3. Go to youth job training center to gain skills that are in demand
4. Talk to your school counselor or former counselor to learn about any possible job opportunities or job leads
5. Do volunteer work which can sometimes lead to a paid job
6. Join organizations like Junior Achievement, Americorps or Peacecorps

Here are 5 tips for adults looking for work:
1. Get up at the same time you did when you were working, no later than 8am, get dressed and be ready in case a prospective employer calls for an interview
2. Attend free networking functions
3. Tell everyone you know or come in contact with that you are looking for a job
4. Lower your standards for employment such as salary, job title, etc. You may have to take a pay cut to get a job but it is better than not having a job. Your ultimate goal is to get a job in your same field making approximately the same amount of money you did when you were unemployed but don't limit yourself
5. Visit job training center to learn new skills, you should have at least 2 skills that are in demand
6. Contact staffing firms or apply for temp-to-perm work

Unemployment Rate Continues to Soar

The unemployment rate has increased to 8.5% or 13.2 million Americans out of work. This also means that 13.2 million Americans do not have health insurance.

Now more than ever Americans must forever change their spending habits to ensure that they can survive a financial crisis. We don't know what the future holds for this country but we do know these things:

1. Buying things that you can't pay off in 3-6 months will lead to excessive interest and finance charges

2. Buying used vs. new will save you money

3. Living below your means will minimize the chances of filing for bankruptcy or foreclosure

4. Create an emergency fund with enough to cover monthly expenses for at least 3-9 months will reduce stress, anxiety, worry and minimize a financial crisis

5. Using a budget will help to track your spending, provide accountability and ensure you have responsible with your spending

6. Mimicking good spending habits will ensure your children practice good spending habits

7. Each time you use a credit card you are making the credit card companies rich and yourself poor

8. Saving for a rainy day does help

For now, we can only hope by the end of the year or early 2010 the country will have recovered and Americans will have learned a valuable lesson - save now or suffer later.