Los Angeles Among Highest Metro Unemployment Rates, Leading Many to Bankruptcy
While some good news came out of Washington D.C. recently when officials announced that the nation’s unemployment rate was at its lowest in years‚ Los Angeles still remains one of the cities with the highest unemployment rates‚ the Los Angeles Times reports.
This has led many residents to consider filing for bankruptcy in Los Angeles as a way to compensate for struggling finances based on a job loss.
Our Los Angeles bankruptcy lawyers have been able to help many people in the last few years who have struggled with their finances after losing a job. And considering how long people typically wait to try to find a job while out of work‚ their finances can continually get worse.
The U.S. Department of Labor’s Bureau of Labor Statistics reports that Los Angeles has one of the highest unemployment rates among major metropolitan areas. Of the 372 metropolitan statistical areas‚ the Los Angeles-Long Beach-Santa Ana area ranks 334 with a 10.7 unemployment rate.
On a national level‚ the jobless rate was measured at 8.5 percent in December‚ improved from 8.7 percent in November and better yet from August‚ when the rate was 9.1 percent. Experts believe some of the good news came as a result of holiday employment‚ which is typically seen as temporary.
The Times reports that employers added 200‚000 net jobs in the last month of 2011‚ twice the number of November. Private sector jobs soared‚ while public jobs declined. The average hourly earnings also increased‚ the newspaper reports.
Analysts believe that the numbers are good news‚ but they’re not positive it will be a lasting trend. The numbers did come in better than expected‚ compared to projections for the end of the year.
To put the numbers into perspective‚ the nation still has 6 million fewer jobs than it did in December 2007‚ when the recession began. At that point‚ the unemployment rate nationwide was 5 percent. In the last three years‚ the economy has slightly perked up‚ but has largely lapsed back into minimal growth.
While the unemployment rates in California are higher than national rates‚ people are struggling at a higher rate here than elsewhere in the country. And many people can use bankruptcy laws to their advantage to help with their debt situation.
The longer a family is without a steady income‚ the more debt they will likely rack up. Even with a minimum contribution from the government for unemployment benefits‚ this alone in many cases can’t match what a family was previously bringing in with a job.
Another factor to consider is that without health insurance‚ medical bills can creep up‚ adding to a family’s debt and missed payments can lead to a worsened credit score. This is more debt that will keep the family in a constant spiral.
The good news in all this is that filing for bankruptcy can help families in need. Bankruptcy laws help consumers. They allow for people to discharge their debt and come out with a more positive outlook after the process has finished. For those who have lost their jobs‚ bankruptcy could be an option that helps the family get back on track with a positive outlook toward the future.
Nader‚ Naraghi & Woodcock‚ APLC will provide a free consultation to help guide you in making a decision that works for you. In Encino‚ Glendale‚ and San Fernando Valley‚ just call (800) 568-0707.
Unemployment rate falls to 8.5%‚ lowest in nearly 3 years‚ by Don Lee‚ Los Angeles Times