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“Unemployed Workers and the Great Recession”

Highlights from the Heldrich Center’s Work Trends Reports, 2009-2010

Carl E. Van Horn and Cliff Zukin*

John J. Heldrich Center for Workforce Development

Rutgers University Introduction InordertobetterunderstandtheAmericanpublic’sattitudesaboutwork,employers,andthegovernment,andtosuggestwaystoimproveworkplacepracticesandpolicy,theJohnJ.HeldrichCenterforWorkforceDevelopmentbeganconductingaseriesofnationwidesurveys.Since1998,morethan20WorkTrendssurveyshavepolledemployedandunemployedAmericansoncriticalworkforceissues.(Thecompletesetofresearchreportsisavailableathttp://www.heldrich.rutgers.edu.)WhilepriorWorkTrendssurveyshadfocusedonacross‐sectionofworkers,theprolonged“GreatRecession”promptedacloserexaminationoftheexperiencesandopinionsofunemployedworkers.Takentogether,nationalWorkTrendssurveysconductedbetweenthesummerof2009andtheendof2010provideadetailedprofileoftheAmericanworkforceincrisis.Initiallyanationalrandomsampleof1,202unemployedworkerswasinterviewedinAugust2009(AppendixA),usingtheweb‐enabledKnowledgePanel®conductedbyKnowledgeNetworksofMenloPark,California.InMarch2010,908ofthoserespondentswerere‐interviewed(AppendixB);764respondentswerere‐interviewedagaininNovember2010(AppendixC).InSeptember2010,unemployedworkersandemployedworkersweresurveyedinordertocomparetheirexperiencesandviewsoftheeconomy(AppendixD).ThispaperhighlightsthekeyfindingsfromtheHeldrichCenter’sefforttocapturetheexperiencesofAmericanworkersduringtheworstlabormarketinageneration.

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An Economic Disaster TheGreatRecessionthatofficiallycoveredtheperiodfromDecember2007toJune2009claimedover8millionjobsandleft15millionpeopleunemployed.But,theeffectsonthenationwerefarmorewidespread.Nearlythreeinfour(73%)AmericansinarandomsampleofemployedandunemployedAmericanssurveyedbytheHeldrichCenterinSeptember2010reportedthattheyhadfirsthandexperiencewiththerecession.Eithertheylostajoborafamilymemberorclosefriendlostajobduringtherecession.Specifically,14%saidtheywerelaidofffromafull‐orpart‐timejob.Another12%saidanimmediatefamilymemberwaslaidoff.Thirtypercentsaidamemberoftheirextendedfamilylostajob.Another17%knewaclosefriendwhowaslaidoffduringtherecession.Americansclearlydonotblamethevictimsofthissevererecession.Perhapsbecausethecalamitywassowidespread,justoneinfour(26%)Americanworkerssaidthatthehighjoblessratewasduetothefactthatsomepeople“didnotwanttowork.”However,thereisplentyofblameattachedtootherparties.Nearlythreeinfourrespondents(74%)attributedthehighlevelsofjoblessnesstocompetitionandcheaplaborfromothercountries.Anearmajorityofthosesurveyed(47%)saidthatillegalimmigrantshadtakenjobsawayfromAmericans.Over4in10respondents(45%)attributedtheeconomicdownturntoWallStreetbankers. Unemployed Workers Struggle and Lose Faith in their Futures TheNovember2010WorkTrendssurveyofAmericanworkerswholosttheirjobsduringtherecessiondocumentedtheerosioninthequalityoflifeformillions.Theirfinancialreserveswereexhausted,theirjobprospectsdim,theirfamilyrelationsstressed,andtheirbeliefingovernment’sabilitytohelpthemnegligible.Theyfelthopelessandpowerless,unabletoseetheirwayoutoftheGreatRecession. Onlyone‐quarter(26%)ofthosefirstinterviewedinAugust2009hadfoundfull‐timejobssome15monthslater.(SeeTable1).Amongthebalanceofrespondents,43%wereunemployedandlookingforwork,11%wereworkingparttimebutlookingforfull‐timework,8%wereworkingparttimeandnotlookingforfull‐timework,and13%wereunemployedbutnotlookingforwork.WhilethereweresomeemploymentgainsbetweenAugust2009andNovember2010,therewasverylittlechangebetweenMarchandNovember2010.Thepercentageofthoselookingforwork,notlooking,andcurrentlyemployedshowsthegreatstagnationofthelaborforce.1

1Whenwerefertothe“panel,”wearereferringtoallrespondents,regardlessofemploymentstatus,whowereaskedasurveyquestion.Whenreferringtothe“unemployed,”weincludethosewhowereunemployedandlookingforworkandthoseworkingparttimebutwhowantedafull‐timejobinNovember2010.The“reemployed”includethosewhowereemployedfulltimeandthosewhowereworkingparttimeandnotlookingforfull‐timeworkinNovember2010.

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TABLE 1. PANEL EMPLOYMENT STATUS

Mostunemployedworkerssurveyedinlate2010feltthataneconomicrecoverywasstillalongwayoff.Just1in10(9%)saidsomeimprovementwouldcomebytheendof2011,and4in10thoughttheywouldhavetowaitatleastthreeyearsbeforeseeingaturnaround.Fifteenpercentareevenmorepessimistic,believingthattheeconomywillneverrecover.Withlittleoptimismabouttheeconomicfuture,themanyunemployedAmericansfeelhelplessandpowerlessandquestionafundamentalAmericancredo;namelythatanyonewhoworkshardcansucceed.Morethanhalfofthepanelists(57%)believedthatnomatterhowdeterminedtheyare,hardworkdoesnotguaranteesuccess.AnationalsampleconductedataboutthesametimebytheKaiserFamilyFoundation,HarvardUniversity,andTheWashingtonPostshowedmostAmericansbelievedtheopposite—thatAmericanscangetaheadifthey’rewillingtoworkhard.2 The Long-Term Unemployed Table2showstheemploymentstatusofallrespondentssurveyedinNovember2010andencompassesthosewhoareunemployedandlookingforwork,unemployedbutnotlookingforwork,andthosecurrentlyemployed.Clearly,unemploymenthitssomegroupsharderthanothers.Thisisparticularlynoticeablewithage,where62%ofthoseover55werestilllookingforwork,comparedto57%betweentheagesof35and54,and47%ofthoseunderage35.Blacksreportedslightlyhigherunemploymentratesthanwhitesandthoseatthelower‐andmiddle‐incomelevelsreportedmoredifficultythandidupper‐

2TheWashingtonPost/KaiserFamilyFoundation/HarvardUniversity,RoleofGovernmentSurvey(MenloPark,CA:TheHenryJ.KaiserFamilyFoundation,2010).

August March November

2009 2010 2010

Unemployed and looking 75% 54% 54%

Jobless and looking NA NA (43%)

Part time, looking for full time NA NA (11%)

Unemployed, not looking 5% 13% 13%

Don't want a job NA (8%) (6%)

Discouraged, dropped out NA (5%) (7%)

Employed 19% 33% 34%

Full time NA NA (26%)

Part time, don't want full time NA NA (8%)

Total 99% 100% 101%

Number of Respondents (1,202) (908) (764)

NA = Not Ascertained

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incomerespondents.Thosewithsomecollegeeducationfareworsethaneithercollegeorhighschoolgraduates.Theamountoftimepanelmembershavebeenwithoutajobdemonstratestheintransigenceofunemployment.(SeeFigure1).Morethan6in10oftheunemployed(64%)havebeenlookingforatleastayear,withfullyone‐third(35%)lookingforovertwoyears.Thepercentageoutofworkforayearormoreincreasedfrom25%inAugust2009to48%inMarch2010andto64%byNovember2010.Thepercentageoutofworktwoyearsormorehasincreasedfrom10%inAugust2009toitscurrentfigureof35%inNovember2010. TABLE 2. WHO IS LOOKING FOR FULL-TIME WORK? Employed Not in Labor

Force Unemployed and Looking

for Work

Total % Total Number

Age

18 - 34 41% 12% 47% 100% 161

35 - 54 32% 12% 57% 101% 332

55+ 21% 17% 62% 100% 271

Education

High school or less 33% 17% 51% 101% 198

Some college 28% 5% 67% 100% 265

Bachelor’s degree or higher

43% 14% 42% 101% 301

Gender

Male 35% 13% 53% 101% 378

Female 31% 13% 56% 100% 386

Race/Ethnicity

White, non-Hispanic

37% 12% 51% 100% 542

Black, non-Hispanic/Other, non-Hispanic/ Hispanic

29% 11% 60% 100% 150

Income

Less than $30K 27% 14% 60% 101% 245

$30K - $60K 29% 10% 61% 100% 244

More than $60K 56% 16% 28% 100% 275

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Justunderhalfoftheunemployed(47%)believedthatatleastanotheryearwillpassbeforetheyworkagainorarenotsurewhenthatwillhappen.Morethanhalf(58%)werepessimisticaboutfindinganewjobinthenearfutureandfullyone‐quarter(24%)wereverypessimisticaboutstartingworksoon.Moreover,theunemployeddonotexpectmuchfromanynewjobtheymightget.Abouthalf(47%)ofthoselookingforfull‐timeworkbelievedtheirnewjobwillpaylessthantheirmostrecentjobheld,andjustone‐quarterofthepanelbelievedtheywilleitherbepaidthesameormorethantheirlastjob,withtheremainderuncertain. Thefederalgovernment’sNovember2010jobsreportdocumentedatremendousincreaseinthenumberofdiscouragedAmericansworkers.IntheHeldrichCenter’sMarch2010survey,13%wereunemployedandnotlookingforwork.Ofthisgroup,42%stoppedlookingforworkbecausetheygottiredofsearchingorwerediscouraged.TheNovember2010numberswerenearlyidentical.Bythen,aboutone‐quarterofthepanelmemberswereverylong‐termunemployed;thatis,theyhadbeenunemployedandlookingforfull‐timeworkformorethantwoyears.Two‐thirdsofthisgroup(67%)wereeitherveryorsomewhatpessimisticabouteventuallyfindingwork.Halfdidnotthinkthatdaywillcomeforatleastanotheryear,ifever.Just3%ofthelong‐termunemployedbelievedthattheirnextfull‐timejobwillpaybetterthantheirlastposition,withfully60%predictingthattheyultimatelywillendupearningless.

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The Reemployed Asnotedabove,theNovember2010WorkTrendssurveyfoundthatonlyone‐thirdofthoseoriginallylookingforworkinAugust2009hadfoundanotherjobbyNovember2010,eitherasfull‐timeworkers(26%)oraspart‐timeworkerswhodidnotwantafull‐timejob(8%).ThisfindingisbetterthantheMarch2010surveywhenonly13%reportedthattheyfoundfull‐timeworkandanother8%wereworkingparttime.Formostofthereemployed,thejobsearchlastedalongtime.Just43%ofthereemployedfoundworkinafewmonths;half(about49%)reportedthattheyactivelysoughtemploymentformorethanhalfayearbeforetheyfoundajob.Almostone‐third(30%)saidtheyhadbeenlookingforafullyearormore.(SeeFigure2.)

Formostrespondents,theirnewjobisjust“acceptable”fornow.Morethanhalf(54%)saidthatthepositiontheyhavenowwillenablethemto“getby”financiallywhiletheylookforsomethingbetter.Morethanathird(36%)acceptedajobbelowtheireducationorexperiencelevel;nearlyathird(32%)saidtheytookajobtheydidnotlike.Almostamajorityofreemployedworkers(48%)wereforcedtotakeasignificantcutinpay.Sixintenareearningatleast20%lessattheirnewpositioncomparedtotheirlastfull‐timejob.Aboutone‐thirdofreemployedworkersreceivedfewerfringebenefitsintheirnewjob.Over4in10changedtoanewfieldorcareer(seeFigure3),whereasonly1in5reemployedworkersinterviewedinMarch2010wereworkinginanewfield.

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Financial Impacts Thefinancialrealityisgrimforunemployedworkers.Eighty‐onepercentsaidtheirpersonalfinancesareeitherinonlyfairorpoorshape.Justone‐thirdofthepanelexpectedtheywillrecoverfinanciallyandreturntowheretheywerebeforethedownturnbegan,whilemost(61%)didnotexpecttogetbacktotheirprioreconomicstationinlife.MostAmericanworkers,moreaccustomedtoanticipatingupwardeconomicmobilitythroughoutaworkingcareer,nowdonotexpecttofarebetterfinanciallyinthefuture.AsTable3illustrates,theunemployedandreemployedareunderseverefinancialdistress:61%indicatedthattheeconomyhadamajorimpactontheirfamilies.Mostpanelists(57%)saidthattheirfinancialsituationhasgottenalotworsesincetheGreatRecessionbegan;three‐fourthsofunemployedworkersreportedhavingalotlessinincomeandsavings.Alargenumberofthosewhoreportedfinanciallosseslostnearlyhalfoftheirsavings.Almost60%reportedhavingatleast25%lessinsavings.Facingseverefinanciallossesanduncertainty,unemployedworkersmadesubstantialsacrifices,whichaffectedtheirqualityoflifeandtheirfamilies.Panelistswereaskedwhethertheyhadreducedspendingsomuchduetotheirfinancialsituationthatithadmadeanoticeabledifferenceintheirfamily’sdailylives.Fiftypercentofpanelistssaidtheyhadgivenupthingstheyconsidereddesirable,andanother40%hadtogowithoutsomethingsconsideredtobeessential.Morethan7in10reducedspendingonluxuries—vacationsandentertainment—whichisnosurprise.But,anearmajorityalsoslashed

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spendingonwhatmostconsidernecessities—about5in10gaveupacentralelementinfood(51%),healthcare(45%),transportation(45%),andhousing(42%).Andchangesweremaderegardlessofwhetherpanelistswereemployedorunemployed.(SeeFigure4.)Perhapsmostdisturbingishowmanyunemployedworkerswereforcedtoreducespendingonatleastoneessential—80%spentlessoneitherfood,housing,orhealthcare.Infact,overhalfofallunemployedworkers—and60%ofthelong‐termunemployed—donothavehealthcarebenefits.Morethanhalf(54%)alsosaidtherecessioncontributedtomorestressinfamilyrelationshipsforboththereemployedandthoselookingforwork.Whenaskedwhattheyhavedonetocopewiththefinancialtroublescausedbytheirunemployment,41%reportedthattheyborrowedmoneyfromfamilyorfriends,soldpossessions(36%),orincreasedcreditcarddebt(29%). TABLE 3. SEVERE FINANCIAL IMPACTS

Economy has

Major Impact on

Family

Poor Financial

Shape

Family’s Financial

Situation is Worse

Compared to Two

Years Ago

Have a “Lot Less” in

Personal Income

and Personal

Savings

!"##$%&'(#) 61% 46% 57% 58%

*'(#+,')-.$%.&."/

!"#$%&'(#) 67% 60% 61% 65%

*'"+,-#.$/0"#$%&'(#) 75% 74% 68% 76%

1##$%&'(#) 52% 27% 52% 48%

01)

23/,/45 51% 41% 47% 46%

46/,/65 69% 51% 64% 67%

667 67% 47% 66% 65%

*2"3&.4+-

89+:/;<:''&/'./&#;; 58% 49% 57% 61%

='$#/<'&&#+# 67% 53% 59% 60%

>?<:#&'.@;/)#+.##/'./

:9+:#.

59% 31% 55% 48%

5)-2)6

A?&# 61% 49% 61% 57%

B#$?&# 61% 42% 52% 59%

7&3)

C:9-#D/"'",89;%?"9< 56% 45% 59% 57%

>&?<EF89;%?"9< 69% 48% 54% 61%

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Diminished Expectations for the Future of the Economy and the Workforce Nearlytwointhreeunemployedworkersbelievedthattheeffectsoftherecessionwillbepermanent,ratherthantemporary,andthattheeconomyisundergoingfundamentalandlastingchanges(SeeFigure5.)ManybelievedthatthingswillneverreturntowheretheywerebeforetheGreatRecession.Morethanhalfbelievedthatthefollowingwillbepermanentchanges:

Theelderlywillhaveamoredifficulttimeretiringwhentheywantto(65%). Theelderlywillneedtofindpart‐timeworkafterretiringtomakeendsmeet

(61%),aviewheldbynearly70%ofthoseoverage50. Itwillbecomeharderforyoungpeopletoaffordcollege(51%). Workerswillneverfeelassecureintheirjobsastheyoncedid(49%)andwill

increasinglyhavetotakejobsbelowtheirskilllevel(49%). Older Workers TheGreatRecessionwreakedhavocwiththeretirementplansofolderworkers,asshowninTable4.Astaggeringnumberofolderworkers(73%)havechangedhowtheyenvisiontheirnearfutureasaresultoftherecession.Morethanone‐quarter(27%)expectedtoretireearlyandtobeinvoluntarilyunemployed.Another46%ofpanelistsage50andabovesaidthattheirunemploymentexperienceduringtheGreatRecessioncausedthem

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tothinkaboutretiringlaterthantheyhadoriginallyplanned.Aboutthesamenumber(41%)intendedtotaketheirSocialSecuritybenefitsassoonastheyareeligible,withroughlyhalfofthisgroup(46%)sayingtheirunemploymentexperienceinfluencedtheirdecisioneventhoughtheywillreceivelowerbenefitsthaniftheywereabletodelayretirementforafewyears.

TABLE 4. THOUGHTS OF THOSE OVER 50. PERCENT WHO: Believe the elderly will have to find part-time work in retirement 68%

Believe the elderly will not be able to retire when they want to 67%

Say they will retire earlier or later than planned because of their unemployment experience

73%

Plan to take social security as soon as they are eligible, or already have 60%

Say their financial situation will stay where it is now, rather than returning to its pre-recession level

72%

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Conclusion TherecessionhasbeenacataclysmformillionsofAmericanworkersthatwilllikelyhaveenduringeffects.Itishardtooverstatethedireshapeoftheunemployed.FifteenmonthsaftertheHeldrichCenterfirstcontactedanationalsampleofunemployedworkerswholostjobsduringtherecession,justone‐quarterhadfoundfull‐timejobs.Mostofthosenewjobswereforlesspayorbenefits,with40%havingtochangecareerstofindemployment.ByNovember2010,only12%oftheunemployedworkersfirstinterviewedinAugust2009wereabletofindanotherjobthatproducedanincomeequaltowhattheyhadearnedbeforetheywerelaidoff.Forthosewhoremainunemployed,thecupboardhasnowlongbeenbare.Therecessionstrippedawayanyluxuriesfromthemlongago.Andontopofthehalfwhoreportedhavingtogiveupdesirableelementsofthequalityoflife,another40%nowsaytheyaregivinguprudimentstheyhadlongconsideredessential.Eightypercentreportedhavinggivenupsomethingonceconsideredfundamentaltotheirlivesinatleastoneoftheareasoffood,housing,orhealth.MillionsofunemployedAmericansarelivinglivesofdownwardeconomicmobilitylastexperiencedonawidespreadbasisintheUnitedStatesduringtheDepressionofthe1930s.Theymanifestanairofresignationtotheirfates.Byamarginofalmosttwotoone,morefelttheywillnotreturntotheirformerfinancialpositionthanthosewhothinktheywill.Thevastmajoritydidnotsimplysaytheyhavelessinsavingsandincomethantheydidafewyearsago,butthattheyhavealotless.Thenationisalsowitnessingthebirthofanewclass—theinvoluntarilyretired.Manyofthoseoverage50believetheywillneverworkagainatafull‐timejobcommensuratewiththeireducationandtraining.Morethanone‐quarterexpecttoretireearlierthantheyplanned,whichhaslong‐termconsequencesforthemselvesandsociety.Manywillfileforsocialsecurityassoonastheyareeligible,despitethefactthattheywillreceivelowerbenefitsthaniftheywerecoulddelayretiringforafewyears.AcasualtyoftheGreatRecessionhasbeenthecoreAmericanprinciplethatifpeopleworkhardandplaybytherules,theywillgetahead.Now,themajorityoftheunemployeddonotbelievethathardworkwillguaranteesuccess.Theyfeelpowerless,andvoicelittleconfidenceinthegovernment’sabilitytohelpthem._______________________________ *VanHornisProfessorofPublicPolicyandDirectoroftheJohnJ.HeldrichCenterforWorkforceDevelopment;ZukinisProfessorofPublicPolicyandSeniorFacultyFellowattheHeldrichCenter.BothteachattheEdwardJ.BlousteinSchoolofPlanningandPublicPolicyatRutgersUniversity.

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APPENDIX A

The Anguish of Unemployment Report:http://www.heldrich.rutgers.edu/sites/default/files/content/Heldrich_Work_Trends_Anguish_Unemployment.pdf

MediaRelease:http://www.heldrich.rutgers.edu/sites/default/files/content/Heldrich_Press_Release_Anguish_Unemployment.pdfSurveyRespondents:1,202individualswholostajobbetweenSeptember2008andAugust2009SurveyConducted:July‐August2009PublicRelease:September3,2009KeyFindings

60%oftherecentlyunemployedlosttheirjobssuddenly,withoutadvancewarning.Eightintengottwoweeksnoticeorless.Just15%ofthejoblessreceivedanyseverance,andvirtuallynonewereofferedretraining.

8in10didnotseenotmuchchanceofreturningtotheplacetheyonceworked,eventhoughmostworkers(72%)previouslythoughttheyheldpermanentjobs.

Overhalfoftheunemployedlosttheirjobsforthefirsttime.

Morethanoneinfourofthosewhowereunemployedforthefirsttimeearned$75,000ormoreintheirpreviousjob;oneinfourfirst‐timeunemployedworkershaveatleastafour‐yearcollegedegree.

Threeinfourunemployedworkerssaidtheeconomicsituationhadamajorimpactonthemandtheirfamily.

Only40%ofthecurrentlyunemployedreceivedUnemploymentInsurancetohelpthemweathertheeconomiccrisis,and83%ofthosewhodidreceiveaidwereconcernedthattheirbenefitswouldrunoutbeforetheyfindajob.

Onlyhalfofthejoblesshadhealthbenefits.

Two‐thirdsofrespondentssaidtheyweredepressed,overhalfhadborrowedmoneyfromfriendsorrelatives,andaquarterhadskippedmortgageorrentpayments.

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SelectedMediaCoverage/AnguishofUnemploymentSeptember2009

NewYorkTimes,SundayWeekinReviewsectionhttp://www.nytimes.com/2009/09/06/weekinreview/06portrait.htmlhttp://www.nytimes.com/imagepages/2009/09/05/weekinreview/06portraitg.ready.html

NewYorkTimes,Op‐EdcolumnistBobHerbert

http://www.nytimes.com/2009/09/15/opinion/15herbert.html

AssociatedPress–worldwidedistribution BusinessWeek CNN PBSNewsHour MSNBC CNBC NPR‐PlanetMoney NPR‐RadioTimes CBSRadioNetwork HuffingtonPost Forbes NewYorkPost VoiceofAmerica–China DerSpiegel(Germany)

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APPENDIX B

No End in Sight: The Agony of Prolonged Unemployment

Report:http://www.heldrich.rutgers.edu/sites/default/files/content/Work_Trends_May_2010_0.pdf

MediaRelease:http://www.heldrich.rutgers.edu/sites/default/files/content/Work_Trends_21_Press_Release.pdf

SurveyRespondents:908SurveyConducted:March2010PublicRelease:May4,2010

KeyFindings

Two‐thirds(67%)ofthosejoblessinAugust2009werestilljoblessinMarch2010,and12%hadgivenuplookingforjobs.

Only13%oftheAugust2009jobseekershadfoundfull‐timeworkbyMarch2010.

Only12%ofthoseoverage50foundfull‐orpart‐timework,comparedto21%ofthosebetween30and49,and29%ofrespondentsages18to29.

Lessthan10%oftheunemployedworkerswhohadobtainedjobswereabletoearnatleastasmuchastheirpreviouswageorsalarylevel.

BetweenAugustandMarch,thenumberofjobseekerssearchingformorethansevenmonthsrosefrom48%to70%.

Overhalfdidnotthinktheywouldfindanewjobinthenearfutureeventhough73%werewillingtotakeapaycutand77%werewillingtochangecareersinordertogetajob.

90%ofrespondentsratedtheirfinancialsituationfairtopoor.

Morethanhalfborrowedmoneyfromfamilyorfriends,45%hadincreasedcreditcarddebt,and70%hadusedmoneysavedforretirement.

4in10wentwithoutmedicalcareforthemselvesorfamilymembers.

Nearlyone‐thirdwereusinggovernmentFoodStampstohelpputmealsonthetable;oneinfivereportedgoingtoasoupkitchenorfoodpantry.

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SelectedMediaCoverage/NoEndinSightMarch2010

NewYorkTimes,WeekinReviewchart–July4,2010http://www.nytimes.com/imagepages/2010/07/04/weekinreview/04goodmangraphic.html?ref=weekinreview

http://www.nytimes.com/2010/07/04/weekinreview/04Goodman.html?_r=1&ref=petersgoodman

NationalPublicRadio

http://www.npr.org/templates/story/story.php?storyId=126497613&sc=emaf NewYorkTimes,EconomixBlog ABCNews HuffingtonPost KansasCityStar NationalGovernorsAssociation

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APPENDIX C

The Shattered American Dream: Unemployed Workers Lose Ground, Hope, and Faith in their Futures

Report:http://www.heldrich.rutgers.edu/sites/default/files/content/Work_Trends_23_December_2010.pdf

MediaRelease:http://www.heldrich.rutgers.edu/sites/default/files/content/Shattered_American_Dream_Press_Release.pdf

SurveyRespondents:764SurveyConducted:November2010PublicRelease:December16,2010

KeyFindings

Nearly6in10unemployedworkershadsoughtanewjobformorethanoneyear;fullyone‐thirdhadsearchedformorethantwoyears.

BetweenfirstcontactinAugust2009andtheNovember2010survey,just26%hadlandedfull‐timejobs.Halftookacutinpayorbenefits.

ProlongedunemploymentofU.S.workersledmanytoquestionthevalueofhardwork.

Morethanhalfoftheunemployed(58%)werepessimisticaboutfindingajobinthenearfuture.

Therecessionhitjoblessworkersover50yearsofageparticularlyhard:27%wereinvoluntarilyretired,unabletofindjobsanddroppingoutofthelaborforce;another46%saidtheywouldhavetoputoffretirement.

Just9%thoughttheeconomywouldbegintorecoverin2011,withanother33%anticipatingeconomicrecoveryby2012;56%believedrecoverywasthreeormoreyearsout.

Halfbelievedtherewillbelastingchangesinhowsecureworkersfeelintheirjobs,theabilityofyoungpeopletoattendcollege,andworkershavingtotakejobsbelowtheirskilllevel.

41%ofjoblessAmericansdoubtedtheabilityofeitherPresidentObamaoraRepublicanCongresstoleadaneconomicrecovery.

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Byamarginof61%to35%,morefelttheywouldbestuckintheircurrentfinancialshaperatherthanmakingitbacktowheretheywerebeforetherecessionbegan.

Threeinfive(61%)saidtheeconomicsituationhadamajorimpactontheirfamily;overhalfsaidtherecessionhadcausedthemtomakeamajorchangeintheirlifestyle.

51%hadreducedspendingonfood,73%spentlessonclothing,45%cutbackonhealthcare,and42%spentlessonshelter.

SelectedMediaCoverage/TheShatteredAmericanDreamDecember2010

NewYorkTimeshttp://www.nytimes.com/2011/01/01/business/economy/01hires.html?_r=1

NewYorkTimes,Op‐EdcolumnistBobHerberthttp://www.nytimes.com/2010/12/28/opinion/28herbert.html?_r=1

CNN.com(op‐ed)http://www.cnn.com/2011/OPINION/01/07/vanhorn.unemployment.jobs.study/

NationalPublicRadio NPR’sAllThingsConsidered BloombergTV/BloombergRadio MSNBC CNNInternational ChinaRadioInternational HuffingtonPost DailyKos MarylandPublicRadio WisconsinPublicRadio MinnesotaPublicRadi0 Forbes.com PhiladelphiaInquirer InternationalBusinessTimes

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APPENDIX D

American Workers Assess an Economic Disaster

Report:http://www.heldrich.rutgers.edu/sites/default/files/content/Work_Trends_September_2010.pdfMediaRelease:http://www.heldrich.rutgers.edu/sites/default/files/content/Work_Trends_Press_Release_September_2010.pdfSurveyRespondents:818U.S.residents18andolder,bothemployedandunemployedSurveyConducted:July‐August2010PublicRelease:September1,2010

KeyFindings

Nearlythreeinfour(73%)oftheAmericanssurveyedhadbeendirectlyaffectedbyarecessionduetoitsunprecedentedlengthandseverity.

Sincethestartoftherecessioninlate2007,14%hadlostafull‐orpart‐timejob.

Another12%sawanimmediatefamilymemberloseajob.

Another30%hadamemberoftheirextendedfamilyloseajob.

Another17%knewaclosefriendwholostajob.

Two‐thirdsofworking‐ageadultsbelievedeconomicconditionswouldbethesame(41%)orworse(27%)bythesummerof2011.

50%ofAmericanswhostillhadjobswereveryconcernedabouttheirjobsecurity,andanastounding86%hadatleastsomeconcern.

Morethanhalf(56%)thoughttheU.S.economyhadundergoneafundamentalandlastingchangeasopposedtoatemporarydownturn(43%).

Onlyone‐quarterofthoseworking(26%)andoneinsixoftheunemployed(17%)saidthatthehighjoblessratewasduetothefactthatsomepeopledidnotwanttowork.

Nearlythreeinfourrespondents(74%)attributedthehighlevelsofjoblessnesstocompetitionandcheaplaborfromothercountries.

Anearmajorityofthosesurveyed(47%)believedillegalimmigrantshadtakenjobsawayfromAmericansandcontributedtohighunemployment.

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Over4in10respondents(45%)attributedhighunemploymenttotheactionsofWallStreetbankers.

Americanworkersweredividedabouthowgovernmentshouldrespond,andexpressedlittlefaithinWashington’sabilitytomanagetheeconomy.

Byamarginof70%to30%,moredisagreedthanagreedthataneweconomicstimuluspackagewasneeded,evenifitaddedtothenationaldebt.

Yethalfbelievedthegovernmentshouldcuttaxesforbusinessesinordertohelpcreatejobs,evenifitcausedthenationaldebttoincrease.

54%werewillingtoseethedebtgoupinordertofundprogramstodirectlycreatejobs;77%ofunemployedworkerssupportedjobcreationprograms.

Just23%trustedPresidentObamatohandletheeconomy,comparedto19%whotrustedtheRepublicansinCongress.Forty‐fivepercentsaytheytrustedneither.

SelectedMediaCoverage/AmericanWorkersAssessandEconomicDisasterSeptember2010

NationalPublicRadio NPR’sAllThingsConsidered NBCNews BBC.com NewYorkPost ClevelandPlainDealer PhiladelphiaInquirer NewarkStar‐Ledger AtlanticMagazineblog HuffingtonPost IndustryWeek Employment&TrainingReporter NPR–WHYY/Philadelphia IndiaTimes