Unemployment cuts across all wealth levels and affects even America's most affluent.
Most Americans – even the nation’s wealthiest individuals - have a close friend or family member who is looking for, but unable to find work, according to new Millionaire Corner research that shows the unemployment crisis cuts across all wealth segments.
“Unemployment knows no bounds,” said Catherine McBreen, president of Millionaire Corner. “Joblessness is affecting professionals at the highest wealth levels and across all age brackets. High-net worth individuals have more resources at hand to cope with job loss, but the end result is often a significant decline in wealth.”
A September survey of 1,101 investors finds that 54 percent of Millionaires are well acquainted with someone unsuccessfully looking for work. Less affluent Americans are even more likely to be close to someone who wants a job, but can’t get one. The situation applies to 60 percent of investors with less than $100,000.
Announcing new efforts to stimulate the economy this week, the Federal Reserve Board of Governors said it anticipated only a gradual decline in the unemployment rate which persists above 9 percent.
“Continuing weakness in overall labor market conditions,” sluggish growth, weak household spending and a depressed housing sector have prompted the Fed to purchase $400 billion in securities with up to 30-year-maturity dates in an effort to bring down long-term interest rates.
Earlier this month, the Bureau of Labor Statistics found little monthly change in employment in most major industries, though it reported that the health care sector continued to add jobs in August. The official number of unemployed Americans remains at 14 million. Unemployment is highest for teenagers, blacks and Hispanics. The long-term unemployed, those jobless for more than 27 weeks, stands at 6 million and accounts for 43 percent of the unemployed.
Initial unemployment claims remain well above 375,000 the benchmark for sustainable job growth. First-time Jobless claims for the week ending September 17 were 423,000, according to data released today by the U.S. Commerce Department. The largest increases for initial claims for the week ending September 10 were in Pennsylvania, Puerto Rico and North Carolina, where jobs were lost in the textile, construction, leather and lumber industries. Texas, California, Kansas, Illinois and Missouri say the biggest drop in initial unemployment claims.