Excellent article that illustrates the changing dynamics in the U.S. job market since 2007 and the start of the great recession.
"Long-term joblessness the kind that Ms. Barrington-Ward and about four million others are experiencing is now one of the defining realities of the American work force."
Entire article at:
Caught in Unemployment's Revolving Door
Gretchen Ertl for The New York Times
Jenner Barrington-Ward says that she has been told, point-blank to my face, We don't hire the unemployed.
By Annie Lowrey
Published: November 16, 2013
On a cold October morning, just after the federal government shutdown came to an end, Jenner Barrington-Ward headed into court in Boston to declare bankruptcy.
Gretchen Ertl for The New York Times
Ms. Barrington-Ward, who hasn't had a full-time job since 2008, is planning a local access television show in Somerville, Mass.
It took weeks to put the paperwork together, given that her papers and belongings were scattered across the country there was a broken-down car and boxes of paperwork in Virginia Beach, clothes in Colorado and personal possessions at a friends house in Somerville, Mass. She managed to estimate her income maybe $5,000 last year, but maybe half that this year from odd jobs. Soon, she would officially have nothing.
It has been a painful slide. A five-year spell of unemployment has slowly scrubbed away nearly every vestige of Ms. Barrington-Wards middle-class life. She is a 53-year-old college graduate who worked steadily for three decades. She is now broke and homeless.
Ms. Barrington-Ward describes it as my journey through hell. She was laid off from an administrative position at the Massachusetts Institute of Technology in 2008; she had earned about $50,000 that year. With the recession spurring employers to dump hundreds of thousands of workers a month and the unemployment rate climbing to the double digits, she found that no matter the number of resumes she sent out she stopped counting in the thousands she could not find work.
I've been turned down from McDonald's because I was told I was too articulate, she says. I got denied a job scrubbing toilets because I didn't speak Spanish and turned away from a laundromat because I was too pretty. I've also been told point-blank to my face, We don't hire the unemployed. And the two times I got real interest from a prospective employer, the credit check ended it immediately.
For Ms. Barrington-Ward, joblessness itself has become a trap, an impediment to finding a job. Economists see it the same way, concerned that joblessness lasting more than six months is a major factor preventing people from getting rehired, with potentially grave consequences for tens of millions of Americans.
The long-term jobless, after all, tend to be in poorer health, and to have higher rates of suicide and strained family relations. Even the children of the long-term unemployed see lower earnings down the road.
The consequences are grave for the country, too: lost production, increased social spending, decreased tax revenue and slower growth. Policy makers and academics are now asking whether an improving economy might absorb those workers in time to prevent long-term economic damage.
I don't think we know the answer, said Jesse Rothstein, an economist at the University of California, Berkeley. But right now, I think everybody's worst fears are coming true, as far as we can tell.
Soon after we first talked in October, Ms. Barrington-Ward left her sister's house in Ohio, where she had crashed for six weeks, and went back to Boston and filed her bankruptcy paperwork. She contacted a headhunter. I've got to get a job, she said. I just have to. She had two job interviews lined up and her fingers crossed.
Long-term joblessness the kind that Ms. Barrington-Ward and about four million others are experiencing is now one of the defining realities of the American work force.
The unemployment rate has fallen to 7.3 percent, down from 10 percent four years ago. Private businesses have added about 7.6 million positions over the same period. But while recent numbers show that there are about as many people unemployed for short periods as in 2007 before the crisis hit they also show that long-term joblessness is up 213 percent.
In part, that's because people don't return to work in an orderly, first-fired, first-hired fashion. In any given month, a newly jobless worker has about a 20 to 30 percent chance of finding a new job. By the time he or she has been out of work for six months, though, the chance drops to one in 10, according to research by the Federal Reserve Bank of San Francisco.
Facing those kinds of odds, some of the long-term jobless have simply given up and dropped out of the labor force. So while official figures show that the number of long-term jobless has fallen steeply from its recessionary high of 6.7 million, many researchers fear that this number could mean as much bad news as good. Workers over 50 may be biding their time until they can start receiving Social Security. Younger workers may be going to school to avoid a tough job market. Others may be going on disability, helping to explain that program?s surging rolls.
Stan Hampton, 59, a veteran of the Iraq war, is now earning his associate degree. But he has not had a job since returning from active duty in 2007, and is now living in an apartment complex for veterans near Las Vegas.
I'm just trying to hang on until my retirement kicks in, he said, though he stressed that he would still look for a job. I have not been in jail or prison, nor am I an alcoholic, drug addict or gambling addict. I am simply old, unemployed and out of money.