Posted by marykeating on May 17, 2012 under Economic situation | 
To continue the trend of studies of who has suffered most in the economic downturn, another new study focuses on the ill effects on young workers trying to enter the job market during the Great Recession,
Younger workers, those under age 25, hover at about twice the national rate. So when the overall rate rises, the young are hit twice as hard. Racial minorities are also more likely to be unemployed than white workers. When these two trends are combined, we see the heartbreaking statistic that African American high school graduates under the age of 25 have an unemployment rate of 49.1% in the past twelve months. Yet that high rate did not translate into a higher proportion of the graduates taking shelter in college to ride out the recession and increase their earning potential. The extremely high cost of college doubtless plays a role, as does the increased likelihood that the young graduate’s parents are worse off in the recession.
College graduates in this age group are more likely to be employed, but the rate of unemployment or underemployment (too few hours) is high, almost 20%. More people than that are working at jobs that don’t require a college degree, and that presumably they would not take if they had more choices.
Unfortunately, this study predicts that the negative effects of young workers entering, or trying to enter, this job market will last for years.
Posted by marykeating on May 16, 2012 under Age discrimination, Economic situation, Employment benefit issues |
Since the start of the economic debacle now being termed the “Great Recession,” many United States workers have found themselves unemployed for long periods. A new study shows that while layoffs were was more likely to affect younger workers, these employees were more likely to become reemployed. By 2011, more than a third of older unemployed workers had been jobless for more than a year. This disparity was worse for men, for less educated workers, and for minority workers. As reported here before, many older workers realistically face a future where they are too young to retire, but will never have a job again.
The study looks at possible reasons for the lingering unemployment, as well as the long-term effects on workers aging toward retirement age.
Age discrimination accounts for much of the reluctance to hire workers. Sometimes age discrimination is based on irrational fears that older workers will be less technologically proficient, expect higher wages, or will be unwilling to take direction from a younger manager. Sometimes, however, the refusal to hire people of a certain age relates to the increased health insurance premiums attributable to the addition of an older worker.
The persistently unemployed older age group will face lower social security benefits because social security is tied to the worker’s latest and lifetime earnings. Some people will retire early, and therefore commit to lower social security benefits for their lifetime. And by necessity, the workers may dip into savings earmarked for their retirement. Overall, this recession will continue to affect lives for some years. If the health care reform does not untie health benefits from employment, age discrimination is unlikely to fade away.
Posted by marykeating on May 11, 2012 under Economic situation, Family responsibility, Pending legislation, Sex-based discrimination |
Congress will consider a new bill called the Pregnancy Fairness Act, designed to improve the rights of pregnant workers against endemic discrimination. The bill was introduced on Wednesday in the House.
The ways in which courts have limited pregnancy discrimination laws are well described in this article.
The new law would require employers to make reasonable accommodations to their pregnant workers, similar to requirements under the Americans with Disabilities Act. Like the ADA, it would apply only to employers with at least 15 employees.
Pregnancy discrimination appears to be on the rise, based on the calls I have been receiving. The worker who loses her job because she is pregnant is in a triple bind: she loses income, she loses her health care benefits when she needs them most, and she is less likely to be considered for a job, since she will need a leave of absence in the coming months. Many pregnant women are capable of continuing their work through term, but may occasionally need to sit down, visit a restroom more often, or refrain from heavy lifting. If an employee’s job is “Heavy Lifter,” perhaps no accommodations can be considered reasonable. But for most employees some simple consideration can keep them working.
Posted by marykeating on February 8, 2012 under Economic situation |
The latest labor statistics show a net employment gain of 1.4 million jobs over the past year. As of the end of December, 3.4 million job openings waited for candidates, up 300,000 from the end of November. The report also analyzed the reasons for people leaving, the cause of most job openings. For the past year, the proportion of employees quitting, rather than being laid off or fired, rose to pre-recession levels. That statistic is an interesting demonstration that normal times may be returning. Although many people feel the emergence from the recession has been glacial, all good news should be welcomed.
Posted by marykeating on January 24, 2012 under Economic situation, sexual harassment |
The Ethics Resource Center issued its biannual report on the prevalence of misconduct in American companies. Two counter-intuitive findings stood out for me: One found that in bad economic times company ethics improved, while the reporting of misconduct rose. The study found that pressure to engage in unethical behavior is more rampant. Likewise, retaliation against whistleblowing increased, to the point where it is now at an all time high.
On the other hand, while employees thought that workplace ethics was on the decline, they observed less misconduct overall. Some believed that wrongdoers were laying low during the recession. The center predicted that “as the economy gets better – and companies and employees become more optimistic about their financial futures – it seems likely that misconduct will rise and reporting will drop.”
Though it would seem that misconduct would increase during difficult economic times, not all misconduct is designed to increase profits. The Center shows that the incidence of misconduct observed by employees rises and falls with the stock market. The study suggests that employees are more careful when their job stability is more fragile to avoid sexual harassment and other misconduct.
Another finding focused on people who actively used social networking. The report showed that they report more negative experiences in their workplaces, and were more likely to be retaliated against. At the same time, they “show a higher tolerance for certain activities that could be considered questionable.”
The report strongly recommends that employers improve their commitment to ethics programs, end retaliation, and bond with active social networkers, who are more likely to witness misconduct, and generally to say positive things on social networking sites.
Posted by marykeating on January 3, 2012 under Economic situation, Unemployment compensation |
According to a recent survey, almost a third of people unemployed in the third quarter of 2011 had been without a job for more than a year. This figure is double that of two years earlier. As with many other unemployment patterns, the groups hardest hit are the oldest, and the least educated workers.
The study does not delve into the personal costs of the lack of job prospects for so many months. But the International Monetary Fund tackled the “human cost” of long-term recessions, concluding that some of the advanced economies with relatively high incomes were the most affected. Oddly, the United States suffered a large increase in the number of unemployed people, while Germany and Japan did not. The study traces the likely lingering effects, from worker discouragement to lifelong diminishing earnings. These in turn lead to negative health outcomes, including stress-related illnesses and the health implications of losing health insurance.
An interesting component of instability focuses on social cohesion. Data from around the world supports the conclusion that the “personal joblessness experience translates into negative opinions about the effectiveness of democracy and increases the desire for a rogue leader.” On a more personal scale, the loss of a job affects one’s ability to interact with co-workers on the job; at any place that requires cash; and any time one’s personal sense of worth is so attached to being employed that old friends or haunts are avoided. Further, the additional burden on younger workers delays their independence.
Posted by marykeating on January 2, 2012 under Economic situation, Unemployment compensation |
The old year ended with Congress deciding to join together, begrudgingly perhaps, in extending unemployment benefits for two more months. The Republican standoff, which attempted to tie any relief in the unemployment benefits arena to agenda items such as an agreement not to increase taxes on the wealthiest. Almost three million unemployed workers would have lost their benefits by February, but for the extension.
The upshot is that people who became unemployed in the summer are able to move on to the emergency benefit program once their 26 weeks elapse.
The social security payroll tax cut was also extended for two months. According to the Washington Post, the tax cut saved the average household $900 last year, but worries about social security’s solvency and independence increased with the move to lenghtn the tax cut.
Posted by marykeating on December 14, 2011 under Economic situation, Sex-based discrimination |
A new coalition has formed to help women adversely affected by the sluggish economy. The earlier reports that the recession hurt men more than women has been superseded by the new reality. More layoffs have occurred in the public sector, which employs a lot of women; for whatever reason, moreover, the rate of layoffs of women exceeds their representation in the public sector. Since the recession ended, the job gains have helped men more than women.
There is no reason for a gender war over the small economic gains, and that is not the coalition’s purpose. It is true that in a one-parent household the parent is more likely to be the mother, however, so the job loss affects multiple people. The coalition “HERvotes, seeks to emphasize the importance of extending unemployment benefits, and providing affordable health insurance.
Posted by marykeating on November 11, 2011 under Discrimination in employment, Economic situation, veterans' discrimination |
Despite the protection of one of the strongest laws prohibiting discrimination (USERRA), veterans (and current members) of the armed forces experience higher unemployment rates than the rest of the population. The Department of Labor has rolled out a couple of resources that could prove helpful in reintegrating veterans in civilian society.
The first is called “My Next Move for Veterans.” The website asks for the veteran’s military occupation code, and gives some guidance on jobs in the private or public sector that make use of the same skills.
The second is a veteran’s job bank, offering job listings from companies specifically looking for veterans as their next hire.
It is harder to prove discrimination in the failure to hire someone. If a veteran is turned down for a job, he or she is usually not told why, and doesn’t have the inside knowledge to show it was veteran status. Perhaps employers fear that the employees will be recalled to duty, that they came back damaged, that they won’t take direction from a non-military boss. If these resources help veterans find employment, that would help us honor their service.
Posted by marykeating on October 29, 2011 under Economic situation |
A study published in the New York Times shows that the long-term unemployed are disheartened, but despite their troubles they continue to believe in the American dream.
Many have emotional and mental health problems, in addition to the obvious financial issues: joining social security early, with the lifelong diminution of benefits, facing foreclosures, giving up dreams of college education for their children. The unemployed population reported more pessimism about the economy than Americans as a whole. Still, more than half believed that they would find a job, some believing they’d find a good job, in the next year. Part of the optimism seems to come from the third of those who are being retrained into a different career path.
