One feature of the US labor market at the end of the recession was that many people had taken jobs in the period before for which they were over-qualified and hence there was the likelihood that such people would be looking to move on once the opportunity to do so arose. At the recession’s peak the unemployment rate had reached double figures and in those circumstances people without jobs were prepared to take anything they could get. After all they had their bills to pay and the longer there was no regular income coming into the house the more debt problems they were accumulating.
Many households had a great deal of repair work to do to their finances. There are several components involved in that process and they include regular income, increasing where possible and control of expenditure. The latter involves cutting out waste but also looking at ways to reduce unnecessary costs relating to any quick realistic loans and credit card debt. Credit card balances incur a high level of interest and many people had significant balances because cards became their final way of paying their daily bills when income was drying up.
There was a high level of defaulting across the country; in many cases debts were written off because they were simply uncollectable. People who defaulted were unlikely to be able to get credit from traditional sources once that happened of course. Those who managed to keep within their credit limits and retain their cards still faced the prospect of paying a great deal of interest without their being able to reduce their balances significantly if they were simply paying the minimum monthly repayment required.
Since the end of the recession the unemployment rate has continued to fall. Over 200,000 new jobs are being created each month and the rate has now returned to pre-recession levels of 5.3% although there are regional variations. The result is that there is increased mobility within the labor force. Some are moving to return to full time employment, others are finding something more suitable for their talents and are prepared to migrate to get it.
A survey done by Challenger, Gray and Christmas of 1,000 of their clients has identified a significant increase in the number of people moving to find a suitable job. That is consistent with an Atlas Van Lines’ study in 2014 which identifies a similar increase in the USA and Canada. There is no doubt that a mobile labor force helps to get the economy moving and if more people are fitting into jobs for which they are suited the economy will benefit further.
There is still some way to go for the economy and its citizens. Negative equity in the real estate market is slowly disappearing. At its worst values had dropped 30% from pre-recession levels and 20% of owners were living with negative equity. The recovery has encouraged more people to move confident that it is once again sensible to invest in real estate, if they can afford to do so.
In States where unemployment is below the national average there is no reason for anyone not to feel secure; if they have regular income it is likely that they will continue to have that. Such people are ideal candidates for online lenders who are prepared to advance money with income being the main criterion. It presents them with the opportunity to look at their finances and plan to get them on a better footing. If they have credit card balances incurring high rates of interest they can reduce their monthly outgoings by taking out bad credit loans that are much more competitive. Anyone who wants to borrow money for anything from creating an emergency fund to investing in retirement can do their sums and see if a loan is one way to help do that.
There is certainly nothing wrong in borrowing money as part of an overall financial strategy. The strategy can include cutting out waste and paying off any debt that is incurring a high rate of interest. The employment data justifies action and online lenders are in place to help.