Two days ago I got a letter from NY State Unemployment telling me to show up for an appointment next week to certify for extended benefits after my current benefits expire on August 14th. I got a chuckle out of the work search record I was supposed to bring with me. There were 10 rows, one for each prospective employer you contact each week.
Aren’t these people aware that once you reach the age of fifty or so, the chance of getting a job in your field is about the same as winning the American Idol contest? The NY Times reported on February 2nd:
In the current listless economy, every generation has a claim to having been most injured. But the Labor Department’s latest jobs snapshot and other recent data reports present a strong case for crowning baby boomers as the greatest victims of the recession and its grim aftermath.
These Americans in their 50s and early 60s — those near retirement age who do not yet have access to Medicare and Social Security — have lost the most earnings power of any age group, with their household incomes 10 percent below what they made when the recovery began three years ago, according to Sentier Research, a data analysis company.
Their retirement savings and home values fell sharply at the worst possible time: just before they needed to cash out. They are supporting both aged parents and unemployed young-adult children, earning them the inauspicious nickname “Generation Squeeze.”
New research suggests that they may die sooner, because their health, income security and mental well-being were battered by recession at a crucial time in their lives. A recent study by economists at Wellesley College found that people who lost their jobs in the few years before becoming eligible for Social Security lost up to three years from their life expectancy, largely because they no longer had access to affordable health care.
“If I break my wrist, I lose my house,” said Susan Zimmerman, 62, a freelance writer in Cleveland, of the distress that a medical emergency would wreak upon her finances and her quality of life. None of the three part-time jobs she has cobbled together pay benefits, and she says she is counting the days until she becomes eligible for Medicare.
In the meantime, Ms. Zimmerman has fashioned her own regimen of home remedies — including eating blue cheese instead of taking penicillin and consuming plenty of orange juice, red wine, coffee and whatever else the latest longevity studies recommend — to maintain her health, which she must do if she wants to continue paying the bills.
“I will probably be working until I’m 100,” she said.
This morning I went to the Unemployment website to file a weekly claim and found this bit of news there:
ALERT: Federal cuts to extended unemployment benefits (beyond 26 weeks)
Updated March 1, 2013
Beginning with the week ending April 7th, federal government budget cuts known as sequestration could affect your unemployment insurance benefits. If you are receiving regular UI benefits you will NOT see any change. However, if you are receiving federal extended unemployment benefits that start after 26 weeks, the federal government has directed us to reduce your payments by 10.7% beginning that first week in April. New York State has no control over these cuts in benefits and no ability to waive or reduce the level of cuts. If you are going to be affected, you will receive a letter during the month of March telling you your exact benefit amount. Please check this website for the most up to date information concerning the sequestration cuts. And please be aware that our telephone call center agents do not have any more up to date information, so it is best to use our webpage, Facebook page or contact the United States Department of Labor at 1-866-487-2365, the White House at 202-456-1414 or your member of Congress at 202-224-3121.
What this means is that the 14 weeks of extended benefits I am eligible for after August 14th will be cut from $404 to $360. Now as it turns out my situation is not as dire as most facing such cuts. My wife is a full-time professor who makes a decent income, while I am collecting Social Security payments of $2400 per month. But what if I was 58 instead of 68, single, and living in a typical Manhattan apartment that rents $2000 per month for a studio? That easily could have been me.
Gawker has been running a series on the unemployed, including this tale of woe from someone who had been working in information technology for 9 years:
One evening, four months later, in January, 2010, I got a call at home from work, which was unusual. I was told that my position would be eliminated in favor of contractors, who would develop an e-commerce platform in house. The department head thanked me for my five years of work (it was actually 9, but she didn’t know that; she had only started six months before) and that was that. I kept updating the blogs in the normal way, but someone seemed to notice the snarky tone that the blogs suddenly seemed to take, and complained to the company. I got a phone call asking if I knew what the blogs were, and who updated them. I told them that I no longer worked there and did not normally give out advice for free, but that if there were domains out there that they owned and had control of, it might be considered a liability.
I have not held a full-time job since. I am either “overqualified” (too old), “lack proper qualification” (I have no degree) or I “don’t fit the company culture” (am not pretty enough to be a marketing director).
I have been staving off the sheriff by making crappy landing-page type websites for fly-by-nights that want to increase their Google rankings on their real websites, or by working phone banks, or by playing standup bass in bluegrass bands. There has not been a single month in the last two years where I have made more than $1200. My modest mortgage payment is $1198. My three children and I are living on a $420 SNAP benefit. My wife, who does actually have a degree, got a part time, temp job at the local library after they laid off all the regular employees and hired temps. She left about six months after the paychecks stopped.
Meanwhile the stock market keeps breaking records.
Maybe that’s a function of the New New Economy:
NY Times March 3, 2013
Recovery in U.S. Is Lifting Profits, but Not Adding Jobs
By NELSON D. SCHWARTZ
With the Dow Jones industrial average flirting with a record high, the split between American workers and the companies that employ them is widening and could worsen in the next few months as federal budget cuts take hold.
That gulf helps explain why stock markets are thriving even as the economy is barely growing and unemployment remains stubbornly high.
With millions still out of work, companies face little pressure to raise salaries, while productivity gains allow them to increase sales without adding workers.
“So far in this recovery, corporations have captured an unusually high share of the income gains,” said Ethan Harris, co-head of global economics at Bank of America Merrill Lynch. “The U.S. corporate sector is in a lot better health than the overall economy. And until we get a full recovery in the labor market, this will persist.”
The result has been a golden age for corporate profits, especially among multinational giants that are also benefiting from faster growth in emerging economies like China and India.
These factors, along with the Federal Reserve’s efforts to keep interest rates ultralow and encourage investors to put more money into riskier assets, prompted traders to send the Dow past 14,000 to within 75 points of a record high last week.
While buoyant earnings are rewarded by investors and make American companies more competitive globally, they have not translated into additional jobs at home.
Other recent positive economic developments, like a healthier housing sector and growth in orders for machinery and some other durable goods, have also encouraged Wall Street but similarly failed to improve the employment picture. Unemployment, after steadily declining for three years, has been stuck at just below 8 percent since last September.
With $85 billion in automatic cuts taking effect between now and Sept. 30 as part of the so-called federal budget sequestration, some experts warn that economic growth will be reduced by at least half a percentage point. But although experts estimate that sequestration could cost the country about 700,000 jobs, Wall Street does not expect the cuts to substantially reduce corporate profits — or seriously threaten the recent rally in the stock markets.
“It’s minimal,” said Savita Subramanian, head of United States equity and quantitative strategy at Bank of America Merrill Lynch. Over all, the sequester could reduce earnings at the biggest companies by just over 1 percent, she said, adding, “the market wants more austerity.”
As a percentage of national income, corporate profits stood at 14.2 percent in the third quarter of 2012, the largest share at any time since 1950, while the portion of income that went to employees was 61.7 percent, near its lowest point since 1966. In recent years, the shift has accelerated during the slow recovery that followed the financial crisis and ensuing recession of 2008 and 2009, said Dean Maki, chief United States economist at Barclays.
Corporate earnings have risen at an annualized rate of 20.1 percent since the end of 2008, he said, but disposable income inched ahead by 1.4 percent annually over the same period, after adjusting for inflation.
“There hasn’t been a period in the last 50 years where these trends have been so pronounced,” Mr. Maki said.
At the individual corporate level, though, the budget sequestration could result in large job cuts as companies move to protect their bottom lines, said Louis R. Chenevert, the chief executive of United Technologies. Depending on how long the budget tightening lasts, the job cuts at his company could total anywhere from several hundred to several thousand, he said.
“If I don’t have the business, at some point you’ve got to adjust the work force,” he said. “You always try to find solutions, but you get to a point where it’s inevitable.”
The path charted by United Technologies, an industrial giant based in Hartford that is one of 30 companies in the Dow, underscores why corporate profits and share prices continue to rise in a lackluster economy and a stagnant job market. Simply put, United Technologies does not need as many workers as it once did to churn out higher sales and profits.
“Right now, C.E.O.’s are saying, ‘I don’t really need to hire because of the productivity gains of the last few years,’ ” said Robert E. Moritz, chairman of the accounting giant PricewaterhouseCoopers.