Unemployment

“I hope my mom doesn’t evict me anytime soon,” joked Moe Hamad, a recently unemployed 20-year-old from the suburbs of California’s Inland Empire. He had worked Monday through Friday from 10 a.m. until 6 p.m. as a loan modifications consultant at American Mitigation. His job was to talk to people about foreclosing on their homes and describe the different options the company provides for doing so, he said.

. The company had been making cutbacks, however, and Hamad was fired Friday, Feb. 20. “For about a week, my numbers were a little low,” he said. “So they cut me.” Though he had only been with the Newport Beach, Calif. company for two months, he said he saw at least five out of about 45 employees terminated during his time there.

Hamad and his former co-workers are like many of the more than 11.5 million Americans who have found themselves out of a job since the economy took a deep dive in December 2007. As of January 2009, the unemployment rate has risen to 7.6 percent, and the country faces the worst recession it has seen in three decades.

Looking for a job during this economic crisis is futile, Hamad said. He has aaplied at businesses ranging from Men’s Warehouse to Verizon Wireless, not expecting to be immediately hired.

“They are straight forward with you,” he explained. “They say, ‘We have your application, we will give you a call, but as of right now, we have no positions to fill.’” It is discouraging, he acknowledged.

Though Hamad lives at his mother’s house in Corona, Calif., he does have bills to pay. “I have to pay for my car insurance, my cell phone, the electricity and gas,” he explained. He said the he will be able to handle some expenses with the small savings he has, but the big bills might pose a problem. “I’m worried about my cell phone right now,” he said with a chuckle.

While Hamad continues to search for a job opening, he says he will use his small savings and tax rebate. “I’m waiting to get my tax refund,” he said. “But if I blow through that too quickly, I might have to think about applying for unemployment.”

As of December 2008, California saw an unemployment rate of 9.3 percent, the third highest in the country. According to the Employment Development Department, more than 356,000 of the people without jobs filed for unemployment benefits, or Unemployment Insurance (UI). That number jumped to more than 363,000 a month later in January 2009.

According to the EDD, people filing for unemployment can receive anywhere from $40 to $450 per week, the average being $321 — which amounts to $1 more than if the filer were making $8 an hour, California’s minimum wage.

But for Dave Brody, Jessica Frausto and their 2-year-old son, Jordan, this is not enough money to live on. Brody, a 26-year-old who has worked in construction since he was a teenager, says he has had a tough time finding work since the economy has turned for the worse.

“It’s really slow right now because a lot of people aren’t spending a lot of money since they are afraid they will lose their jobs,” he explained. “Right now, we only work on people’s houses that have been saving their whole lives. Before, there were a lot of younger people remodeling with the equity from their homes.”

Frausto, a 23-year-old stay-at-home mother, says she has been doing odd jobs to try and fill the financial void. When asked if she was thinking about sending her son to daycare, her face tightened and she became visibly uncomfortable. “I know there is a program that helps parents pay for daycare,” she said. “I just don’t want to have to send him away so soon,” she added, as tears welled up in her eyes.

Brody said he has received unemployment checks in the past, and explained that the amount of money a person receives is based on the gross pay of the highest quarter of the previous year. He said he received $430 a week between June and August last year, but didn’t qualify for an extension of benefits.

But Brody has sent in a new application. “It is a new year, so I can open up a new case,” he said eagerly. He is now waiting for a reply from the EDD to let him know how much he will qualify for.

“It’s tough waiting for them to get back to you. You try to call and it is busy all day long,” he lamented. “You can’t even get through because everyone needs help. It’s so crazy.”