How did the Great Recession Happen?
Many companies laid off tons of workers when things got bad. It’s what they needed to do to survive, but it really hurt the economy as a whole. Finally the economy is starting to look better again. Not that it doesn’t still need to improve quite a bit, but we are heading in the right direction. In the process companies have learned to be much more efficient which is why they’ve been able to rebound so quickly.
Corporations doing well is great for Wall Street but it hasn’t done much to improve things on Main Street. Unemployment continues to set records for being so high for so long. This is going to continue for a good amount of time for two reasons. One, companies have realized they can do more with less people and that they didn’t really need so many people back when times were good. These types of positions are not coming back, no matter how good things get. However, when things really get better for everyone corporations are going to need to hire people to expand. That will come but for now many corporations are taking a wait and see approach to see if the economy is going to keep improving.
There is two ways that all of this is going to affect most of us. First, the days of getting loans without any concern for repaying them is gone. If you want a mortgage you will to need to show that you are indeed going to make your payments. Second, the rate of unemployment is high and is going to stay high for a while. It is still going to take a bit before corporations start hiring in any meaningful way. If you are one of the unemployed don’t give up hope. Keep sending out resumes and take a look at cheap unsecured loans to help get by in the mean time.