37 percent of unemployed "devestated" by recession

Interesting study by Rutgers University on unemployment shows very few people who have been laid off during the recession have recovered economically. The study interviewed the unemployed over three years, keeping track of respondents even when they found new work. Only 7 percent of respondents described themselves as in equal or better shape since losing their job. Nearly 37 percent describe themselves as either "devestated" or "totally wrecked." That's an estimated nearly 4 million people.

Workers who have MADE IT BACK consider themselves in excellent, good, or fair
financial shape and have experienced no change in their standard of living due to
the recession.

People ON THEIR WAY BACK have largely experienced a minor change to their
standard of living, but say the change is temporary. They also consider themselves in
excellent, good, or fair financial shape.

Workers who have been DOWNSIZED meet one of three conditions; they have
experienced: a minor change that is permanent; a minor change that is temporary, but
they are in poor financial shape; or a major change in their standard of living that is
temporary and they are in at least fair financial shape.

Workers classified as DEVASTATED have experienced a major change to their
lifestyle due to the recession. They can be either in poor financial shape and think the
change is temporary, or in fair financial shape but think this change is permanent.

Workers that have been TOTALLY WRECKED by this recession have experienced a
major change to their lifestyle that is permanent and are in poor financial shape.

Interesting statistics to keep in mind despite the fact of record corporate profits and supposedly "improving" economy.

http://www.heldrich.rutgers.edu/site...

This also applies to mental/psychological. Take a look at any of the threads here to see it first hand.

Clearly they just didn't try their honest best to not be totally wrecked and/or devastated.

Indeed, LobsterMobster. My bootstrap factory is seeing record low sales this year.

Wow... If congress can bailout Wall Street with guarantees and loans, why can't they guarantee a job for an unemployed person?

A - They can but are afraid that they may lose money in the process. So they just let 37% of unemployed become devastated as collateral damage.

I would support a newly built Civilian Conservation Corps. But there is no chance in that since it would be considered Communistic, Fascist and Anti-American according to a certain group of politicians.

KrazyTacoFO wrote:
I would support a newly built Civilian Conservation Corps. But there is no chance in that since it would be considered Communistic, Fascist and Anti-American according to a certain group of politicians.

Plus we've raised two generations to think that that kind of work is "beneath" them.

Mixolyde wrote:
KrazyTacoFO wrote:
I would support a newly built Civilian Conservation Corps. But there is no chance in that since it would be considered Communistic, Fascist and Anti-American according to a certain group of politicians.

Plus we've raised two generations to think that that kind of work is "beneath" them.

And the generations that came before those two generations looked/look down on those types of work...

Duoae wrote:
Mixolyde wrote:
KrazyTacoFO wrote:
I would support a newly built Civilian Conservation Corps. But there is no chance in that since it would be considered Communistic, Fascist and Anti-American according to a certain group of politicians.

Plus we've raised two generations to think that that kind of work is "beneath" them.

And the generations that came before those two generations looked/look down on those types of work...

And they agree that immigrants must not be allowed to do that kind of work (there's such a thing as a legal immigrant? In America?).

This graphic really emphasizes the problem:

IMAGE(http://img525.imageshack.us/img525/494/graphz.png)

I'd have to say I'm personally in the group that made it back. I'd started a new career about a year before the recession hit, and I was only out of training 6 months before I got laid off. That 16 months of layoff rather sucked, but I managed to scrape by with the knowledge that I would eventually be recalled back to work. I've been back to work for almost 2 years now, and I've earned almost double what I did last year during a slow recovery, and about 3 times anything I made before I switched careers.

Strewth wrote:
I'd have to say I'm personally in the group that made it back. I'd started a new career about a year before the recession hit, and I was only out of training 6 months before I got laid off. That 16 months of layoff rather sucked, but I managed to scrape by with the knowledge that I would eventually be recalled back to work. I've been back to work for almost 2 years now, and I've earned almost double what I did last year during a slow recovery, and about 3 times anything I made before I switched careers.

I'm probably also in the made it back category but I'm realizing more and more just how lucky I am.

I made it back but only because I had to move across the country to a better job market. The psychological scars are still really deep in me. My dad is underemployed compared to his previous position with little hope of ever getting back by time of retirement.

I also had to move across the country. Before that I would probably still be counted in the "made it back" category but it didn't feel like it because I was grossly underpaid and working at a terrible company with no job security. I'll be impressed if they're still in business a year from now.

Strewth wrote:
I'd have to say I'm personally in the group that made it back. I'd started a new career about a year before the recession hit, and I was only out of training 6 months before I got laid off. That 16 months of layoff rather sucked, but I managed to scrape by with the knowledge that I would eventually be recalled back to work. I've been back to work for almost 2 years now, and I've earned almost double what I did last year during a slow recovery, and about 3 times anything I made before I switched careers.

I was under the impression that this raping of the economy by Wall Street had a much less pronounced effect in Canada — or was that just the part of the Prairies buoyed by the oil-shale boom?

No, it's true, we weren't as hard hit up here. Something about our banking system being more stable.

The industry I'm in also tends to have layoffs once in a while when it's slow. This one just cut really deep and lasted a long time.

My mother-in-law is in the Down-sized to Wrecked category. She was laid off at her previous position and after searching for several months at all sorts of jobs she is now a Burger-Flipper at McDonalds. Unclear whether she will ever return to better work. There are few opportunities in the town she works and she doesn't have the youth or energy (and reliable transportation is a bit uncertain with her car) to commute two hours a day to a larger city with better options.

I made it back too but only by the skin of my teeth and with a fair amount of good luck. After my attempt at running a small business failed, I was swimming in debt, on the verge of bouncing rent and I'd already talked to a bankruptcy counsellor. I spent almost a year looking for work and other than a 3 month contract job which was Hell, I couldn't find anything. I was reduced to dealing with a bunch of scummy employment agencies who didn't care to work hard for me because I have no post secondary and they all consider over a decade of experience meaningless against that. Thankfully, my girlfriend stumbled across the lead that eventually turned into the awesome job I have now. I'm paid well, treated with respect, didn't have to relocate and though I still have a lot of debt, I managed a lot of financial discipline this year and it's now well under control and we're living comfortably. I consider myself very lucky though and had my girlfriend not found that lead, I'd probably be in a very different spot now. I wish everyone could have this kind of luck.

Also, Stewth speaks truth (heh). Canada weathered the recession far better than most of the G8 because our banking system is heavily regulated and our banks aren't allowed to make the stupid bets that many others did. We have other problems here in that we only have 5 major banks and a few small ones and we have almost no competition. However, when I see what fees banks in the US charge people and how much worse the customer service is, I think we have it pretty well. I'm for the government largely staying out of people's lives but regulation seems to have been to our benefit this time.

I guess I'm looking at delayed devastation. Made it through most of the military's firing programs only to finally be caught up by PTS. Fired in effect. No retiring at 20 years for me, no more secure job/s for me. 12 years down the drain. Going to try collage and see how far I can make it in a CS degree, and live off of what they give me but after that? Who knows. I had planed on being in the military for my full 20, retire, then do something fun for a job. Now it looks like a re-skilling at collage and trying to find a spot in a job market (civilian) that I have no idea about. At least I like top raman and hey, ketchup is cheep!

plavonica wrote:
I guess I'm looking at delayed devastation. Made it through most of the military's firing programs only to finally be caught up by PTS. Fired in effect. No retiring at 20 years for me, no more secure job/s for me. 12 years down the drain. Going to try collage and see how far I can make it in a CS degree, and live off of what they give me but after that? Who knows. I had planed on being in the military for my full 20, retire, then do something fun for a job. Now it looks like a re-skilling at collage and trying to find a spot in a job market (civilian) that I have no idea about. At least I like top raman and hey, ketchup is cheep!

This right here, while there's plenty of similar stories in the private sector, is a damn shame. Someone who seriously applied themselves as a career military person in the USA should not have to face an employment crisis like this.

Edwin wrote:
I made it back but only because I had to move across the country to a better job market. The psychological scars are still really deep in me. My dad is underemployed compared to his previous position with little hope of ever getting back by time of retirement.

According to the gubmint, there's no such thing as underemployment. Your dad is employed. Congratulations!

LobsterMobster wrote:
Edwin wrote:
I made it back but only because I had to move across the country to a better job market. The psychological scars are still really deep in me. My dad is underemployed compared to his previous position with little hope of ever getting back by time of retirement.

According to the gubmint, there's no such thing as underemployment. Your dad is employed. Congratulations! :D


I know I'm rather fond of this chart, but to see Lobster's (sarcastic) point, here are the official government U-3 and U-6 numbers plotted on the same graph as the pre-1994 unemployment numbers, which counted long-term discouraged workers.

IMAGE(http://www.shadowstats.com/imgs/sgs-emp.gif?hl=ad&t=1322845209)

Notice how the "official" numbers have been trending down since mid-2009, but the pre-'94 alternate has been trending up? Gee, I wonder why the government changed their reporting methodology...

Minarchist wrote:

Notice how the "official" numbers have been trending down since mid-2009, but the pre-'94 alternate has been trending up? Gee, I wonder why the government changed their reporting methodology...

Because that's always been the quickest and easiest way to reduce unemployment.

Yep, i'm earning less than i did before the crash and half as much as i would be in the same position back the in UK (having moved countries due to being unable to get a job). Literally just yesterday i met an american game developer who had relocated here too (as of a few weeks ago) and he's on about 3/5ths of what he'd be on back in the US... though at least we both are employed.

jdzappa wrote:

Interesting statistics to keep in mind despite the fact of record corporate profits and supposedly "improving" economy.

The dirty little secret is that the economy has been "improving" like this for years, it's just that it's finally starting to hit 'normal' people that "improving" doesn't necessarily mean improving for all.

Well, like those 'better' unemployment numbers. They're not better because there are more jobs, those numbers are better because after people are unemployed long enough, they don't count as unemployed anymore.

Seriously. Basically the entire drop in the 'unemployment rate' was because the government just spontaneously decided not to count about 400,000 people.

Just a note, I think we've been doing the "only count the unemployed if they are also job seekers" for...I think basically for as long as we've been using the stat. This isn't some recent switch-er-o as far as I know. In fact, there's been more talk about the 'real' unemployment number in recent years than ever before.

True, it's not a new thing, but it's an important example of how government numbers are massaged to make the government look better, not tell you the truth.

Malor wrote:
True, it's not a new thing, but it's an important example of how government numbers are massaged to make the government look better, not tell you the truth.

Another one being the changes in calculating inflation.

I have to say that personally I'm in the climbing out period, but at least I'm near the 7 percent. Still have about $7K in home improvement loans - needed a new roof and then got laid off three weeks after it was installed. I also agree that the government is playing fast and loose with the unemployment numbers.

I honestly don't know when it's going to get better. I'm not sure America can take a Japan-style lost decade. In Japan, people save a lot more and thus had far more of a cushion for horrible times. Companies were much more loyal and would cut salaries versus resorting to mass layoffs (at least for most of the crisis). Things will reach a boil much faster in the States.
The true pessimist in me thinks it will get better when there's rioting in the streets and the government institutes a "work camp" jobs program.

Yonder wrote:
Malor wrote:
True, it's not a new thing, but it's an important example of how government numbers are massaged to make the government look better, not tell you the truth.

Another one being the changes in calculating inflation.


The government is much better now at calculating inflation. There is inflation stats for cities vs rural. For one area vs another. For core vs headline. The techniques are better now. It is just that they get politicized.

The same with unemployment. There is the U-6 vs U-3. There is stats for each state and even each county and metro area.

The government is not hiding unemployment. It is bad and it show the recovery is tepid at best and tragic at worse.

Unemployment should be at 1 to 3%, not 9 or 10%.