The answer is simple, college students are not being counted towards the unemployment rate. This can happen for a few reasons. The primary reason is that the college students, for counting purposes, are not “in” the employment pool and thus unemployed, so they can’t be counted. Think of it, college students while in school can’t collect unemployment benefits because there is typically no company to tie them back to. Same applies for recent college graduates. For those looking to get their first full time position, it is easy to see why they are unemployed, but not counted as being unemployed.

The 2011 year has been difficult for college graduates. For example the average 2011 college graduate debt is $22,900. This high debt, combined with credit card debt, and lower salaries is likely to translate to a higher college graduate bankruptcy rate for 2011.

If you have debt questions, including college student or recent graduate bankruptcy questions, contact the Georgia bankruptcy attorneys at Berry & Associates.

To sustain population growth trends approximately 150,000 to 200,000 jobs need to be added each month. While adding 117,000 jobs sounds like positive news, it is actually less jobs than what is needed just to sustain the economy.

Question: If less jobs than needed where added, how did unemployment go from 9.2% to 9.1%

Answer: Good Question. Again, you need to look deeper into the numbers. This is an indication that many more people are leaving the employment market, through retirement, or just “giving up.” Consider the fact that less jobs were added than there needed to sustain the economy AND the unemployment rate went down. This means that over 100,000+ likely “left” the job market last month through giving up or retirement. It is important to remember that those that are not seeking employment are not counted in unemployment numbers. This means the unemployment rate can be much worse, which can have a direct impact on a person’s ability to repay debt.

Question: If less jobs are added than is needed, what happens to bankruptcy filings in Georgia?

Answer: Georgia has fared better in some categories than the overall country, but worse in others. Atlanta numbers have alot to do with the overall states position were both the unemployment rate has been slightly higher than the national average and the housing crash has been deeper (see Georgia Foreclosures are 6th Highest in the US). Georgia unemployment is currently over 10%, which has put an added strain on the ability for residents to pay their debts. This has led to additional requests for Georgia bankruptcy information from law firms such as Berry & Associates.

If you are having challenges repaying your debts, contact Berry & Associates to learn how their metro Atlanta bankruptcy lawyers can help. Our lawyers specialize in personal bankruptcy cases, including Chapter 7 and Chapter 13.

Defaults on these loans will affect the ability of other businesses in the area to secure financing in order to keep growing, which may result in slower recovery than expected. I think that the recovery should be on the way, but if you are scraping by now thinking that you can wait until the recovery in summer next year, you need to prepare for the possibility that you will have to declare bankruptcy.

Come in for a free evaluation of your current situation and see if bankruptcy can help you get your debt under control. It may seem like a drastic step, but you must remember that bankrupcty is not a personal failure. Bankruptcy allows you to clear the burden that the is causing you stress and help you start fresh with the assets you need to begin a life without debt.