Unemployment Rate expected to hit 8 Percent in 2009

Unemployment Rate expected to hit 8 Percent in 2009

Here are the solid facts: The current unemployment rate is 6.5 percent, the highest it’s been in fourteen years. In 2009, many economists are expecting an eight percent unemployment rate.

Eight percent unemployment amounts to nearly one in every ten people being out of work in 2009. Even if you have a sense of job security and your job is not particularly in danger, this still isn’t very good news. Let’s consider the long term effects of unemployment...

First, you can easily expect the housing market to get crazy as recently-unemployed homeowners find themselves unable to pay for their homes. Real estate values are expected to drop as realtors are forced to lower the price on our neighbor’s former homes just to make a sell. This, after a year that has already experienced record foreclosures.

Even if you’re not too worried about housing costs, consider this: Florida has seen unprecedented mosquito infestations throughout 2008. Why? Well, all those foreclosed homes with swimming pools. Without proper maintenance, they become breeding grounds for the little bloodsuckers.

Second, as those experiencing job loss or pay cuts have less money to spend, retailers have to accept lower returns. In effect, this could lead to more stock market plummets, and, ironically, more unemployment, as retailers don