| Unemployment and the Lower Income The real impact of unemployment on those in lower income categories. |
At the present time our government states that the overall unemployment rate (January 2010) is
at 9.7%, and that it has fallen slightly. That is what is officially stated, but what is the real
unemployment rate and who are affected the most?
at 9.7%, and that it has fallen slightly. That is what is officially stated, but what is the real
unemployment rate and who are affected the most?
Northeastern University's Center for Labor Market Studies released a report recently (Feb. '10)
titled "Labor Underutilization... A Truly Great Depression Among the Nation's Low Income Workers
Amidst Full Employment Among the Most Affluent".
In this report the overall unemployment is broken down into ten wage categories. In the top 10%,
those with household income over $150,000 per year, the unemployment rate is about 3%. This
means that there is essentially no unemployment for this group. For those in the lowest end of the
wage spectrum, the bottom 10%, unemployment is about 31%, or about three times the published
overall unemployment rate.
titled "Labor Underutilization... A Truly Great Depression Among the Nation's Low Income Workers
Amidst Full Employment Among the Most Affluent".
In this report the overall unemployment is broken down into ten wage categories. In the top 10%,
those with household income over $150,000 per year, the unemployment rate is about 3%. This
means that there is essentially no unemployment for this group. For those in the lowest end of the
wage spectrum, the bottom 10%, unemployment is about 31%, or about three times the published
overall unemployment rate.
Those who are in the upper wage categories can usually deal with a period of unemployment with
no difficulty, aside from not being able to buy as many luxury items. If they have managed their
money properly they have assets and a good credit background to rely on, even if they should
become part of that 3% for a little while. Many of those in upper corporate management are
making more now than ever before.
no difficulty, aside from not being able to buy as many luxury items. If they have managed their
money properly they have assets and a good credit background to rely on, even if they should
become part of that 3% for a little while. Many of those in upper corporate management are
making more now than ever before.
Those in the lowest 10% of wage earners are the ones least capable of dealing with
unemployment. These are people who typically make barely enough to live week by week even
when jobs are plentiful. A significant number of those in this category either are homeless or could
become homeless very quickly.
unemployment. These are people who typically make barely enough to live week by week even
when jobs are plentiful. A significant number of those in this category either are homeless or could
become homeless very quickly.
In addition to the percentage of unemployed is how long people have been unemployed. In
January 2009, 22.4% had been unemployed for 27 weeks or more. In January 2010 that
percentage had nearly doubled to 41.2%.
January 2009, 22.4% had been unemployed for 27 weeks or more. In January 2010 that
percentage had nearly doubled to 41.2%.
Unemployment figures stated here are from the
United States Bureau of Labor Statistics, and
from Northeastern University, and are openly
available on the Internet.
United States Bureau of Labor Statistics, and
from Northeastern University, and are openly
available on the Internet.
It's true that unemployment benefits have been extended, but for many even that may be running
out soon. Many have not had adequate employment over the past year to even qualify for any
unemployment benefits. Those who know that they don't qualify are not filing for unemployment,
and are not seen on the statistics of individuals filing new claims. Those managing to work just part
of a week are not considered unemployed, but rather underemployed, even if not earning nearly
enough to live on.
out soon. Many have not had adequate employment over the past year to even qualify for any
unemployment benefits. Those who know that they don't qualify are not filing for unemployment,
and are not seen on the statistics of individuals filing new claims. Those managing to work just part
of a week are not considered unemployed, but rather underemployed, even if not earning nearly
enough to live on.
One group that is not counted in the unemployment statistics are the homeless who don't have the
means to qualify for any significant work, not even having anywhere to take a shower or have
appropiate clothes. Knowing that it's impossible to get, and maintain, any meaningful work, they
don't spend time trying. They don't show up filing for unemployment and are not usually seen at
regular job agencies. As far as the government is concerned, they do not exist and are not
counted.
means to qualify for any significant work, not even having anywhere to take a shower or have
appropiate clothes. Knowing that it's impossible to get, and maintain, any meaningful work, they
don't spend time trying. They don't show up filing for unemployment and are not usually seen at
regular job agencies. As far as the government is concerned, they do not exist and are not
counted.
Comments, questions, or suggestions?
email me at:
clyde@homelessamerican.com
email me at:
clyde@homelessamerican.com
 | |  |
Results of a Gallup poll, released February 23, indicates that 19.9%, or 30 million, American
workers are underemployed. The Labor Department estimates this to be 16.5%. 60% also said
that they had little hope of finding adequate work in the coming month.
workers are underemployed. The Labor Department estimates this to be 16.5%. 60% also said
that they had little hope of finding adequate work in the coming month.
Many people who have the skills to typically
make a reasonable wage are forced to take
low-wage labor jobs, resulting in even higher
competition for these jobs.
make a reasonable wage are forced to take
low-wage labor jobs, resulting in even higher
competition for these jobs.
| February 24, 2010 |
With more highly skilled people unable to find work at their typical wage, they are willing to take
lower paying jobs. For those with minimal training this means increased competition. In my own
situation, I would qualify for an engineering technician position, but there are very few openings. I
qualify for being a production technician, at a lower wage, but there are also relatively few
possibilities. In order to have work, I'm then open to working in assembly just to get by, but this
means more competiton for those who have just enough training to do assembly.
lower paying jobs. For those with minimal training this means increased competition. In my own
situation, I would qualify for an engineering technician position, but there are very few openings. I
qualify for being a production technician, at a lower wage, but there are also relatively few
possibilities. In order to have work, I'm then open to working in assembly just to get by, but this
means more competiton for those who have just enough training to do assembly.
| homelessamerican.com |
| homelessamerican.com |