Jobs Roller Coaster

 The April unemployment numbers came out not too long ago and provided another economic head scratching moment for those of us following the statistics. Head scratching because in April the economy added a record 290,000 jobs (yeah) and at the same time national unemployment claims rose from 9.7 to 9.9%.   Hmm, more jobs, more unemployed people?  Turns out the increase in jobs brought out people who had given up looking (and therefore were no longer counted among the unemployed despite the fact that they had no job). 

President Obama’s take – “[April’s] job numbers come as a relief to Americans who’ve found a job, but it offers, obviously, little comfort to those who are still out of work.”  The number of people unemployed in the nation stood at 15.3 million in April this year.   Counting those who have given up looking for work and part timers who would prefer to be working full time, the so-called underemployment rate rose to 17.1 % in April.

“When you look at the employment report from 20,000 feet, it’s all good numbers,” said Brian Wesbury, chief economist at First Trust in Chicago. “What happened [with the higher unemployment rate] is that people rushed back into the labor force.”

“That will slow down and we will see the unemployment rate come down. But in order for that to happen, we need job gains and we are getting that now.”

Indeed the jobless rate declined in 34 states in April. So things would seem to be looking up, right? Briefly. Then on May 20th NPR reported that number of people filing new claims for unemployment benefits unexpectedly rose last week by the largest amount in three months, saying that the surge is evidence of how volatile the job market remains, even as the economy grows.  Applications for unemployment benefits rose to 471,000 last week, up by 25,000 from the previous week, the Labor Department said Thursday.

 So for us job seekers it’s a bit of a roller coaster – hopes up, hopes down.  And depending on your demographics your outlook might be colored by other factors.  For instance if you were a secretary or travel agent the opinion recently voiced by a number of economists – that some lost jobs will never come back and some out of work people may never regain their economic place in society – might send your outlook right off the cliff.  In the past few months this idea has been the subject of articles with headlines like “Lost jobs are likely not coming back;” “Jobs That Aren’t Coming Back; “ and “Even in a Recovery, Some Jobs Won’t Return;“  All of which essentially say the same thing – many of the jobs lost in the recession – in industries as varied as construction, interior design and auto manufacturing are no longer deemed necessary.  During the past few years of belt tightening companies have automated processes, out-sourced work, shifted duties and learned work arounds for laid off employees (such as having managers file their own papers, make their own coffee and book their own travel – administrative staff took a big hit, 1.7 million jobs lost).  Sorry folks, the recovery has begun and employers are thinking they’ll just keep some of those cost-savings after 2 years of penny pinching!

 Other demographics come into play for the job seeker as well.  Geographic demographics for one.  While the job market may be getting better in some parts of the country, several states – Michigan, Nevada, and California topping the list – are not seeing any significant improvement. In April California’s unemployment rate was at 12.6 percent, nearly 3 points above the national average.  The good news was that it ‘held steady’ – unchanged from March.  2.3 million Californians remain unemployed while non-farm payroll jobs increased by 14,200 in April. At that rate…well, you do the math.

Then there’s age.  Oh to be 30 again!  Although nationally the youngest workers were hardest hit by the recession, older unemployed workers are finding it harder to land a new job and are remaining unemployed longer. 

 “Things have been very tough for older jobseekers. Duration of unemployment for persons aged 55 and older has soared since the start of the recession and remains higher than for younger workers,” according to an analysis by Sara Rix of the AARP Public Policy Institute. “Those numbers do not paint a rosy picture for millions of older Americans, many of whom may never find jobs comparable to the ones they have lost since December of 2007.”

 I understand the AARP is holding job workshops to help older workers find “meaningful” employment.

Add in being a single parent with a damaged credit rating and you’ll begin to see why I’m not celebrating the economic recovery just yet.  I admit to owning a bleak outlook but not, I’m sorry to say, one I believe is unrealistic. I’ve been out of work for 10 months now- about 9 months longer than I ever expected I’d go without a job!  I apply for jobs and even interview from time to time, without landing one.  I am discouraged. I see the recovery as hope that my children may yet have opportunities but I am no longer confident about remaking my life from the ground up.

For a sobering take on the jobless recovery and what it will mean for America check out this article: “How a New Jobless Era Will Transform America” in the Atlantic.

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3 Responses to Jobs Roller Coaster

  1. Tom says:

    In the 6+ months that I’ve been unemployed I have learned not to let anybody know I’m unemployed. I realized early on that as soon as I told strangers about my current situation they almost instinctively searched for the nearest exit. I got tired of feeling like I was carrying a highly contagious disease so now I just claim that I freelance or that I work independently. I know it seems a bit juvenile, but that’s just the best way I’ve found to socialize and network without scaring people away.

    I would also be careful about reading too much into all these statistics that they keep publishing. I too did this early on and gave up on trying to keep up with the latest figures when I realized that the time and effort spent on them could be put to much better use looking for better ways to occupy my time. I’ve started volunteering and attending any sort of free or inexpensive workshop around my area to learn new skills. All of this while I keep submitting resumes and doing the things that you are supposed to do when job hunting.

    Is it frustrating? Hell yes it’s frustrating, but you are only going to find yourself more stressed out if you keep reading into these pie charts and conflicting reports about the the unemployed.

    Stay strong as another opportunity will eventually surface for all those of us who can’t wait to prove to employers what they’ve been missing out on. 😉

  2. Mark says:

    I have two Masters degrees, computer engineering and a MBA from Carnegie-Mellon and Rutgers respectively. I have worked at one of the premier research companies, Bell Labs and top technology companies, Intel and yet when the dot com bust hit (2000), I could not find work in my field for 4 years.

    I attribute this to several reasons. The main one was that I stayed in Oregon which at the time had the highest unemployment rate in the country. I stayed because I did not have custody of my two children and wanted to see them as much as I could.

    I could not find “menial” work because I did not have the experience such as being a clerk or other such mundane tasks.

    Nowadays even computer/information technology professionals have to face the outsourcing and doing more with less approach by companies here.

    I find that a lot of Oregonians have a very entrepreneurial spirit and tend to create their own businesses rather than looking to a company for an income. I think that takes a lot of gumption, creativity, luck, street smarts, and persistance to make that approach a successful alternative than finding place to show up and collect a paycheck. Plus there is a lot to be said about working for a place that provides health insurance.

  3. Becky R says:

    Yikes! I am unemployed. Technically I am self employed, but nonethless unemployed except my one Sat. night babysitting job. But being self employed I do not qualify for unemployment. I am not sure where I fit in on the numbers.

    It is scary that so many are out of work, especially you who have been out of work 10 months.

    Are you still getting unemployment?

    One scary thing (especially for me) is that my credit stinks (after being left by my ex husband with lots of debt) and some employers check that now. I could barely even get reasonable car insurance, not because of accidents or tickets, didn’t have any, but because of abd credit.

    It could be the reason many will not get a job for a while. YIKES!!

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