News and Society Blog-Economics: Michigan Lays Off 400 - Typepad

Early in 2009, Michigan had added 175 temporary workers to its staff. That was when their unemployment rate was climbing to 14.2 percent, and the weekly jobless claims were boiling over 500,000. Shortly thereafter, a rekindle in the automotive industry offered a helping hand to the ailing state. In 2011, Michigan's job growth rate was increasing faster than the rest of America, and their unemployment rate has continued to go down. With jobless claims now at 187,000, the state's unemployment rate is currently at more tolerable, but still hardly comfortable, 8.6 percent. The increase in jobs is wonderful for the state as a whole. Now that they are seeing some signs of economic recovery, they will be able to function with significantly less federal funding.

However, it is not so wonderful for the staff of the state's Department of Licensing and Regulatory Affairs, who work to provide the jobless with unemployment benefits. With fewer unemployed people to assist, the temporary workers, and 225 permanent staff members, will be let go. That totals to about a fifth of the entire Department.

Whether the national economy is actually recovering is debatable, but the decrease in federal funding for the states, whatever the reason, is forcing about half of the country's state governments to make staffing changes. In other words, people are able to find jobs and people are losing jobs as well. That is bitter irony at its finest.

Since 2009, when President Obama's trillion dollar stimulus overhaul helped the states fund their rising unemployment benefits costs, the federal funding for the continuation of these unemployment benefits is quite simply not there anymore. And Michigan is not the only state in which this is occurring.

The tiny state of Rhode Island had to let 65 of their workers go. Most of them were only on temporary assignment, though, and once the stimulus funding came to a halt, so did their source of employment. Rhode Island has been experiencing the second-highest unemployment rate in the nation, at a whopping 10.9 percent. That's a big number for such a little piece of land.

On the western side of the nation, due to the lack of federal funds, California is shifting its state unemployment workers to disability insurance and tax processing. The Golden State's unemployment rate is the third highest in America, at 10.7 percent. Both of these states would require millions of dollars if they were to keep their staffers. The money would invariably have to come from the government. Of course, the government gets its money from the taxpayer, who is not as keen to give these states their massive funds, as the states are to receive it. These states would do well to consult with a personal Financial Advisor, because a system in which the federal government funds its states is unsustainable.

This article was written by Jennifer Nobles. Jen is a promoter of good business and solid financial advice. She believe that strong finances, possibly with the help of a financial advisor, can help people tremendously and smart investing is the real path to securing a fruitful and stable future.

Article Source:http://EzineArticles.com/?expert

Source: http://newsandsocietyblog-economics.blogspot.com/2012/09/michigan-lays-off-400-unemployment.html

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Source: http://vernonriddle.typepad.com/blog/2012/09/news-and-society-blog-economics-michigan-lays-off-400.html

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