The federal government warns that older Americans are being targeted by a battery of financial scams, including telemarketers offering to do contact tracing – for a fee – or to reserve a slot for a future vaccine. Others are soliciting donations to charities purportedly helping people in need during the economic slowdown.
COVID-19 makes this a perilous time for people struggling with cognitive decline.
Few can escape a deterioration in their cognitive capacity as they age. It’s just a matter of degree and speed. But the faster it happens, the more damage it can do, the FINRA Investor Education Foundation concluded in a new study.
The study was based on surveys of more than 1,000 older residents in Chicago retirement communities and subsidized housing – average age, 80. The same people were periodically asked questions with varying degrees of difficulty about their general financial knowledge and investments and were asked to compare and calculate percentages.
The older people who either initially had less understanding of financial concepts or experienced a faster decline in their knowledge made poorer financial decisions in exercises that simulated real-world decisions.
This included a vulnerability to scams, which was assessed by asking the older people to agree or disagree with statements like this: “If a telemarketer calls me, I usually listen to what they have to say.” (Not recommended.) And this: “If something sounds too good to be true, it usually is” (Count on it.)
To prevent scams, older people – and their caregivers – need to anticipate the financial damage that cognitive decline can cause. …Learn More
Working mothers scrambled when the schools shut their doors last spring, but they found ways to cope. The 2020-21 school year may push many of them over the edge.
Last spring, one in four women nationwide who’d either quit their jobs or were laid off blamed the difficulties of working after the schools closed or they lost child care to COVID-19, a Northeastern survey found.
Alicia Sasser Modestino is in the midst of repeating the survey but believes that the situation has only gotten harder for working mothers this fall.
“When you look down the barrel of a full school year of hybrid or remote learning,” the stopgap measures mothers deployed last spring “are not sustainable,” said Modestino, a mother of four and research director for Northeastern’s Dukakis Center for Urban and Regional Policy.
“If it’s not going to be Congress giving money for schools to reopen safely or the state opening child care centers, a parent is going to have to give up their job, and we know from history that it’s more likely to be women,” she said.
The impact of school closings on Millennials and Generation X can’t be overstated. In 75 of the 100 largest U.S. school districts, returning to school has meant students connecting to Zoom from their bedrooms or kitchen tables.
In the COVID-19 pandemic, a disproportionate share of women have been laid off, because they dominate face-to-face industries – nursing, retail, customer service – that are more vulnerable to closing. But something new is happening to mothers in this downturn. …Learn More
The COVID-19 recession demonstrates an axiom of economics. Black unemployment always exceeds the rate for whites, the spikes are higher in recessions, and, in a recovery, employment recovers more slowly.
A record number of Black Americans were employed in 2019. But when the economy seized up in the spring, their unemployment rate soared to 17 percent, before floating down to a still-high 12.1 percent in September. Meanwhile, the white unemployment rate dropped in half, to 7 percent.
The much higher peaks in the unemployment rate for Blacks than whites and the slower recovery are baked into the economy.
This phenomenon occurred during the “jobless recovery” from the 2001 downturn. When the economy had finally restored all of the jobs lost in that recession, the Black jobless rate remained stubbornly higher.
And after the 2008-2009 recession, as the University of California, Berkeley’s Labor Center accurately predicted at the time, Black unemployment hovered at “catastrophic levels” longer than the white rate did. This disparity is now the issue in the COVID-19 recession.
Geoffrey Sanzenbacher, a Boston College economist who writes a blog about inequality, gives three interrelated reasons for Black workers’ higher unemployment rates.
First, “The U.S. still has a tremendous amount of education inequality, and the unemployment rate is always higher for people with less education,” he wrote in an email. Despite the big strides by Black men and women to obtain college degrees, roughly 30 percent have degrees, compared with more than 40 percent of whites, he said.
Second, Black workers without degrees are vulnerable because they are more likely to earn an hourly wage. An hourly paycheck means that a company can cut costs by simply reducing or eliminating a worker’s hours. “It’s much easier to lay off hourly workers, whose employment is more flexible by nature, than salaried workers,” Sanzenbacher said. …Learn More
Sales and rentals of recreational vehicles have skyrocketed during the pandemic as people working remotely use their newfound freedom to move their workplaces to the great outdoors.
Outdoorsy – the Airbnb of recreational vehicles (RVs) – reports that 40 percent of its new rental customers are under age 40. But long before younger adults hit the road, thousands of baby boomers were buying RVs to roam the country in search of work.
Rather than seeking psychological relief from COVID, as younger workers are doing, the boomers – some retired and some unemployed – are looking for financial security.
In this excellent PBS NewsHour segment, Paul Solman talked to boomers who park their RVs at campsites near whatever seasonal jobs they can find at places like Amazon and JCPenney warehouses, sugar beet farms, and theme parks and national parks.
During the summer tourist season, Judy Arnold has been working at Yellowstone National Park in Wyoming. But with so many businesses shut down by the pandemic, she worries about where her next job will come from. “I definitely need an income,” she told the NewHour.
George Stoutenburgh gave two reasons for his wanderlust. …Learn More
When Millennials’ unemployment rate spiked during the Great Recession, millions of them alleviated their financial problems by moving in with their parents.
Now the coronavirus is chasing Generation Z back home.
Some 2.6 million adults, ages 18 to 29, who had been living on their own moved back home between February and July, the Pew Research Center reports. This pushed up the share of young adults living with one or both parents to 52 percent, which exceeds the rate reached during the Great Depression.
Pew’s analysis included some Millennials. But members of the younger Generation Z account for the vast majority – more than 2 million – of the young adults who’ve returned to the financial security of their parents’ homes this year. [This count does not include college students who came home and attended classes remotely after their schools shut down last spring.]
As was the case for Millennials, what sent Gen-Z back home was a sharp rise in their unemployment rate, Pew said. For example, the rate for people in their early 20s has more than doubled this year to 14.1 percent.
No age group escapes the impact of a recession. The current downturn is the second in a decade for baby boomers, who have faced these major setbacks just as they are trying to square away their finances for retirement.
Losing a job and financial independence as a young adult also has long-term consequences. … Learn More
Squared Away has featured numerous articles this year – the 30th anniversary of the Americans with Disabilities Act – about the challenges that people with disabilities must deal with.
One in four adults in this country has some type of disability. What becomes clear when looking back at this collection of articles is the importance of ensuring that those who are capable of working get the support they need to overcome their unique challenges.
Employment rates, which are lower for people with disabilities, can be improved greatly if they receive support. One recent blog examined a program to assist people with severe intellectual or learning disabilities. The federal-state Vocational Rehabilitation program supplies coaches who help their clients find appropriate work and then smooth the bumps in the employer-employee relationship.
Another program that provides day care to children with disabilities has been effective in keeping their mothers – often single, low-income workers – in the labor force.
The logistical barriers to working are inherently higher for people with disabilities. Yet they are more likely than others to hold low-paying jobs with just-in-time scheduling or shifts that aren’t the same from week to week, according to research covered in an August blog. Imagine arranging special transportation or child care to accommodate these unpredictable schedules.
Economic factors also affect whether people find work or wind up on Social Security disability insurance. Amid the COVID-19 recession, researchers are concerned about the long-term impact of workers with disabilities losing their jobs. During the Great Recession, applications for Social Security disability benefits surged. Once people apply for disability benefits, the odds of ever going back to work decline.
Recessions are also an obstacle for people from low-income families trying to move up the economic ladder. Yet a researcher found that if they can manage to earn more than their parents, they will have more success staying off the disability rolls. One big reason: workers with good jobs and higher incomes are healthier because they can afford better medical care.
Our disability blogs cover research being funded by the U.S. Social Security Administration, which also supports this blog. Here is the complete list of the 2020 headlines:
The economy shows some signs of improving. More than 1 million people went back to work last month, pushing the unemployment rate down to 8.4 percent.
But housing experts say a sure sign of trouble ahead is the crisis unfolding among the third of U.S. households who are renters. Things can only get worse for them, because so many were already vulnerable prior to the pandemic after many consecutive years of rising rents that strained their budgets.
Prior to the pandemic, Harvard’s Joint Center for Housing Studies estimates that more than 40 percent of U.S. renters paid more than 50 percent of their incomes for rent – far more than is affordable for most workers. And these rent-burdened households aren’t confined to the lower-income brackets; they extend into the middle class.
The end of the federal government’s $600 weekly supplement to unemployment benefits in July will increasingly strain renters too, said Whitney Airgood-Obrycki, a researcher at the center.
COVID-19 and the resulting recession “is piling on top of an existing affordability crisis,” she said.
This gloomy assessment is backed by other evidence that residents of the four largest metropolitan areas – New York, Los Angeles, Chicago, and Houston – are running out of resources and face “serious financial problems,” warns a report by NPR and Harvard’s T.H. Chan School of Public Health.
Over a third of the households in these four cities have already plowed through most or all of their savings to cover rent, mortgages, credit card bills and necessities, raising concerns they will not be able to “weather long-term financial and health effects of the coronavirus outbreak.” The situation is particularly bad for low-income families. …Learn More
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