Missouri's seasonally adjusted unemployment rate edged up a tenth of a point to 5.6 percent in September while employment increased robustly by 10,400 jobs.
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Unemployment Down As Job Market Rebounds in Missouri
ST. LOUIS, (SLFP.com) October 31, 2004 - Missouri's seasonally adjusted unemployment rate edged up a tenth of a point to 5.6 percent in September while employment increased robustly by 10,400 jobs, according to the Missouri Department of Economic Development. That unemployment rate is slightly lower than the 5.7 percent rate of a year ago.
Not-seasonally-adjusted unemployment in Missouri went down to 5.4 percent in September from its summer highs of 5.7 percent in August and 5.8 percent in July. The unadjusted rate was also 5.4 percent in September of 2003.
On the other hand, non-farm payroll employment grew by 10,400 to 2,718,800 jobs, on a seasonally adjusted basis. Since bottoming out in July 2003, Missouri's economy has added 45,100 jobs, an increase of 1.7 percent, which is ahead of the nation's growth rate of 1.35 percent for that period.
Some of September's jobs rebound came from school employment, which returned to more normal levels after some irregular movement in the past few months. More favorable weather conditions boosted construction employment by 2,200 jobs, reaching 135,600. Professional and business services added 2,100 jobs, on balance. Employment in financial activities was up by 1,900, and other services employment increased by 1,500 jobs.
Over the past year, employment has grown by 39,100 jobs (unadjusted) or 1.5 percent. The goods-producing sectors have added 6,900 jobs, for an increase of 1.5 percent. Construction is up by 3,300, while manufacturing has grown by 4,000, mostly in the nondurable goods industries.
In the private service-providing sectors, the greatest growth has come in health care and social assistance - 11,500 jobs or 3.8 percent. Professional and business services has also done well, adding 8,800 jobs (2.9 percent growth). Most components of this group have done well, including computer systems design (up by 2,000 or 11.7 percent) and employment services and other administrative support services. Employment has increased by 3,600 jobs in food and related services, while other services employment has added 3,600 jobs.
Crushing Debt Burden Takes Toll on Generation X
NEW YORK, (PRNewswire) October 31, 2004 - The economic security of younger Americans is eroding at an alarming pace as a result of slow wage growth, underemployment, rising costs and mounting student loan and credit card debt, according to a new report, "Generation Broke: The Growth of Debt Among Younger Americans," released from Demos, a non-partisan, public policy group based in New York City.
"This is an age when you set credit and finance benchmarks for the rest of your life," said Tamara Draut, Director of the Economic Opportunity Program at Demos and lead author of the report. "Young adults starting off in the red will find that it impacts their financial security for years to come. This report should set off alarm bells for every American."
The report's data and findings, based on in-depth analysis of the most recent Federal Reserve's Survey of Consumer Finances as well as dozens of other sources, paints a troubling picture of the financial health of America's population of adults aged 18-34, who are entering the period in their lives when financial responsibilities begin to expand. Ironically, this coveted demographic for advertisers and marketers are slipping into a downward debt spiral that is unmatched in modern history.
Among the report's key findings (all figures are in 2001 dollars):
- Average credit card debt among young adults (aged 25-34) increased 55%
between 1992 and 2001, to $4,088.
- The average indebted young-adult household (aged 25-34) now spends
almost a quarter of every dollar earned on debt payments.
- Among the two-thirds of young-adult households (aged 25-34) with incomes
below $50,000, nearly one in five with credit card debt is in debt
hardship -- spending more than 40% of their income servicing debt,
including mortgages and student loans.
- Americans aged 25-34 have the second highest rate of bankruptcy (just
after those aged 35 to 44). The bankruptcy rate among 25-34 year olds
increased between 1991 and 2001, indicating that Gen-Xers were more
likely to file bankruptcy than were young Baby Boomers at the same age.
- The youngest adult households (aged 18-24) with debt spend nearly 30
cents of every dollar earned servicing debt, twice the amount spent on
average in 1992.
- Credit card debt among the youngest adults (aged 18-24) skyrocketed 104%
during this same period to $2,985.
The report finds that major costs associated with adulthood that begin to mount between the ages of 25 and 34 -- such as housing, child care, and health care -- have all increased dramatically over the past decade. Coupled with rising unemployment or under-employment, slow real-wage growth, and sharp tuition hikes that have led to larger student loans, a massive debt burden has been unleashed on America's young adult population.
- Growing numbers of Gen-Xers carry a balance. 71% of credit cardholders
aged 25-34 revolve their balances, compared to 55% of all cardholders.
- Generation-Y may be the most at risk. Three out of four 18-24 year-olds
carry a credit card balance, due largely to unregulated, aggressive
marketing by card issuers on campuses. Between 1990 and 1995, one survey
found credit debt had shot up 134%, from $900 to $2,100. By 2001, a
Nellie Mae study found college seniors graduated with an average of
$3,262 in credit card debt.
- More young Americans now face debt hardship. 13% of those aged 25-34 are
in debt hardship (using 40% or more of their income to service debt), up
from less than 7% in 1992.
- Student loan balances have doubled in the course of a decade. The
average 2002 graduate carried $18,900 versus $9000 for 1992 graduates.
- Young adults pay a price for being uninsured. One in three young adults
lacks health insurance, compared to one in six Americans overall.
- Unemployment/underemployment. Unemployment rates have risen faster for
younger workers than other demographics: 1 in 10 was unemployed in 2003.
College degrees also offer less job security than before: as of March
2004 there were 1.17 million unemployed college graduates, surpassing
the number of high school dropouts.
"During the tech bubble of the late 1990s, Gen-Xers were thought by many to have the brightest of futures as beneficiaries of an Internet-driven economic boom," said Draut. "But just five years later, after the bubble burst, the economic situation for many Gen-Xers has deteriorated gravely. What's even more frightening is that Generation-Y members may find themselves in deeper trouble as they turn even more desperately to high-interest rate credit card debt as a means of survival."
Most Americans Fear Sudden Financial Emergency
ST. LOUIS, (BUSINESS WIRE) October 31, 2004 - Despite Americans' fears of not having enough money to cover sudden expenses resulting from a job loss, an unexpected illness or a major home repair, most of them are unprepared for their future and are not seeking financial advice--even from their spouses, according to the National Investment Watch Survey by St. Lousi-based A.G. Edwards.
"Our results show the nation's current economic uncertainty is taking its toll on Americans, leaving them worried about their near-term financial stability and lacking the liquidity to handle emergencies," stated Sophie Beckmann, A.G. Edwards financial consultant.
While almost three out of four consumers (72%) are concerned about having enough cash on hand to cover emergencies or unexpected expenses like a job loss, the two most commonly owned financial products--retirement plans and life insurance--do not address this need, according to the survey. Another important, but secondary, concern is being able to save enough money to retire when planned (60%).Yet three out of four (75%) don't have a financial advisor.
Those who do have financial advisors tend to plan more and appear to be much more prepared financially, according to the survey. In fact, those with advisors have portfolios that represent 362% of their income, while those who do not have advisors have portfolios just slightly larger than their annual income (105%), indicating the value of having a good financial plan in place and taking the steps required to meet long-term financial objectives.
Spouses: low on list of advisors
Americans tend to lean on themselves and their financial advisors even more than they do their spouses as sources of financial and investment advice and information, the research shows. When asked whom they trust most to give advice about their savings and investment strategy, the majority (35%) say they trust themselves, followed by external sources such as a financial advisor (16.9%) or a parent or grandparent (16.2%). Only 14% chose their spouse, with more women than men picking their spouses.
The most popular time for surveyed couples to discuss financial matters is on the weekends or during dinner. More than twice as many respondents preferred discussing money issues at the end of the day before bed, rather than over coffee in the morning. Just five percent conducted these discussions over e-mail while at work.
"Knowledge is built through communication, and open and frequent communication garners trust. Couples can achieve that with each other by talking frequently and sharing some financial goals before consulting with a financial advisor who can provide unbiased, objective and proactive advice," Beckmann stated.
Other survey results: looming financial needs
Even though Americans say they trust themselves the most regarding financial and investment strategy, a variety of financial issues apparently weighs heavily on their minds, the survey showed. Some specific areas of concern include:
-- Unexpected emergencies - The most imminent fear is the lack of cash assets on hand in the event of a job loss or unexpected major expense, with 35% rating it "very important" and 38% rating it "extremely important" to them at this point in their lives. But most have their money in life insurance or retirement plans instead.
-- Retirement - For many, the first point of investment entry is planning for a steady source of income in retirement, although only 35% were participating in a 401(k) plan through their employer. However, Americans are starting to plan for their retirement at a much younger age, with the majority beginning to think about retirement before they even turn 40. Nearly 75% of the respondents said they would like to travel more when their kids move out.
-- Children - The most popular tools for teaching children about finances and managing money include opening a savings account (64%) and encouraging older children to get a job (60%). More than half give their children a regular allowance. While they advise their children to save as much money as possible, many adults aren't adequately planning on their children's behalf. Life insurance is the only widespread plan parents have in place for their children. More than 55 percent of the parents surveyed stated that they had not even selected a legal guardian for their children.
-- Elder Care - Almost four out of 10 Americans are either currently caring for or anticipate caring for an elderly relative at some point. The majority are at least somewhat concerned about managing these tasks on their own. The primary responsibilities they anticipate managing include household maintenance and acting as a trustee/power of attorney. Those who are currently caring for elderly relatives are usually handling these tasks with no financial or outside assistance.
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