Double-edged sword for job seekers - KLTV.com - Tyler, Longview, Jacksonville |ETX News

Double-edged sword for job seekers

By Philippe Djegal - email
Posted by Ellen Krafve - bio | email

TYLER, TX (KLTV) - Jobs are on the way, according to congress. This week, the Senate approved a $15,000,000,000 jobs bill, that some lawmakers say will save or create more than a million jobs.

Still, jobs don't magically appear. The Labor Department reports a record number of Americans out of work for an extended period of time. And, with good news, comes bad news for the unemployed.

A recent study from the Society of Human Resource Managements finds that employers are relying more on credit checks for new hires now than ever before.

Sixty percent of employers are running credit checks on potential employees, compared to 43 percent in 2004.

The Labor Department also reports that six million jobless Americans have been out of work now for six months or longer. No job, means, no income, making it harder to pay bills. Black marks on your credit report could cost you a job.

"And, I would say if that were the case and you knew there was something there, I would be up front, and say, 'I have had a problem in the past,' and explain the situation to them," advised Glyndel Corzine, a manager at Consumer Credit Counseling Services.

"It should be about a person's work experience," said Brandon Acy, who is unemployed with bad credit. "How they're able to work in that field that they're in the environment of it? Just going off the credit score is a bunch of bull to me."

The bill is now on the way to the House. Right now, employers are required by law to ask for permission to run a credit check. Credit checks are also usually used to gauge potential employers seeking jobs that deal directly with money.

The bill will extend the COBRA premium subsidy, helping to off-set the cost of health insurance for laid-off Americans through the rest of the year. The bill also includes a tax credit for employers hiring new works.

Copyright 2010 KLTV. All rights reserved.

Powered by Frankly