The number of individuals who lost their jobs in Michigan last February went up to 12 percent, the highest jobless rate since 1984.
The further increase in unemployment rate is attributed to the crisis in the automobile industry in the state. According to data, Michigan’s January 2009 jobless rate was the highest ever reported in any state.
With the credit crunch, increase in mass layoffs and pay cuts, the number of foreclosed homes in Michigan is also expected to rise as more and more homeowners will find themselves unable to meet the monthly mortgage payments.
Data from RealtyTrac, a foreclosure monitoring firm, showed that the number of foreclosed homes in Michigan increased by 10 percent from January to February of this year.
Additional data indicated that one in every 360 homeowners in Michigan had received foreclosed homes notice in February.
The increase in foreclosed homes filings is expected to escalate even further now that unemployment rate went up by 12 percent.
According to the Department of Energy, Labor and Economic Growth, job loss in February rose 0.4 percent from January’s 11.6 percent rate.
On a positive note, economic analyst Bruce Weaver cited the 1.4 increase in jobless rate in January from December 2008. He explained that the February rise in unemployment rate was not as drastic compared with previous three months.
He said that the temporary easement of layoffs in the automobile industry had somehow alleviated job losses.
Comparison of February 2009 and February 2008 data showed that last month’s rate increased by 4.6 percent. Michigan has been experiencing eight consecutive months of unemployment rate increase with February the highest since the 12.1 percent increase in January 1984.
However, foreclosed homes data showed that a slight increase in jobless rate does not provide relief on the housing market crisis as the number of Michigan’s foreclosed homes rose by double digits for the first two months of this year.
To help distressed homeowners, especially those who lost their jobs, the Michigan House has approved a bill that would provide a 90-day foreclosure moratorium. On its part, the Department of Treasury has allocated $5 billion to help the automobile industry and put a stop on the increasing unemployment rate.
Michigan’s January 2009 foreclosure rate was ranked the 10th highest in the country.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
Notice: In accordance with FTC guidelines, we state that RealEstateProArticles.com has financial relationships with some companies and may be compensated if consumers choose to buy, subscribe or take any action to a product or service via the links on our website. Occasionally, we receive free access to review a product or service. We do not accept compensation in exchange for a positive review. These reviews are strictly the opinions of the author.
![[Valid RSS feed]](http://www.realestateproarticles.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites