June 23, 2020
Recessions Hit Depressed Workers Hard
Anyone who’s suffered through depression knows it can be difficult to get out of bed, much less find the energy to go to work. Mental illness has been on the rise, and depression and myriad other symptoms get in the way of being a productive employee.
So it’s not surprising that men and women with mental illness are much less likely to be employed than people who have no symptoms. But the problem gets worse in a recession.
In 2008, the first year of the Great Recession, the economy slowed sharply as 2.6 million workers lost their jobs. During that time, people who suffered from mental illness left the labor force at a much faster pace than everyone else, according to a new study from the Retirement and Disability Research Consortium.
The researchers compared average labor force participation, as reported in the National Health Interview Survey, for three periods. Two periods of consistent economic growth bracketed a period that included the onset of the Great Recession: 1997-1999, 2006-2008, and 2015-2017.
Labor force participation for people with no mental illness dipped less than 1 percent between the late 1990s and the period that included the recession. By 2015-2017, roughly three out of four of them were still in the labor force – only slightly below pre-recession levels.
Contrast this relative stability to large declines in activity for people with mental illness – the more severe the condition, the steeper the drop. Participation fell 17 percent among people with the most severe forms of mental illness between the late 1990s and the period that included the recession. By 2015-2017, only 38 percent of them remained in the labor force – well below pre-recession levels. …Learn More
December 17, 2019
Older Workers Ride Out Computer Age
The computer revolution, unleashed in the 1970s, has not stopped. Minicomputers replaced mainframes, and IBM introduced its personal computer. Then came the Internet, laptops, robots, iPhones, and increasingly intelligent software that can drive cars and discern music preferences.
Continual technological change has reshaped and regenerated the economy several times over, creating new types of jobs unimaginable a few years earlier. But the past four decades have also been tumultuous for the workers who were either replaced by machines or couldn’t keep up with the evolving demands of their jobs.
This is a pressing issue for the older workers who would benefit from working longer to improve their retirement finances. An erosion in their physical stamina or mental agility conceivably makes them more vulnerable to losing out to progress. And it can be difficult for people who have invested years in a job to train for and find new employment.
But a new study of labor force trends by the Center for Retirement Research finds this has not been the case. The computer age has had about the same impact on workers over age 55 as it has had on the labor force overall.
Two factors have proved essential to whether people – whatever their age – have had job security in this period of change: whether the work is routine and whether it requires a college education.
Since the 1970s, job options have narrowed for many workers who did not attend college, because computers have been especially good at rapidly and tirelessly performing the routine tasks this group’s work often entails. Examples are the computerized financial transactions that replaced back-office workers who entered the data manually and the robots inserted into assembly lines. The more routine a worker’s job, the more vulnerable he is to being replaced by a machine.
The upshot is that this segment of the labor force is shrinking: roughly a third of U.S. workers hold routine jobs currently, down from more than half in 1979. Nevertheless, the magnitude of this decline has been roughly the same for workers over 50 as for the labor force overall, according to the study, which was conducted for the Retirement and Disability Research Consortium.
In contrast, computerization has not affected the demand for non-routine work that is physical in nature, such as construction and food preparation. These jobs typically do not require a college education either, but it has been virtually impossible to program computers to do non-repetitive work. “The rules governing our innate abilities are a mystery,” and this has protected jobs that emphasize uniquely human abilities, the researchers said.Learn More
December 3, 2019
Workers, Machines and Constant Change
Anyone who drives on the nation’s toll roads has used a job-eliminating device: electronic tollgates.
Unemployment due to new technologies – and workers’ resistance to them – are as old as the industrial revolution. In the early 1900s, glassblowers were replaced by mechanized bottle makers. Today, autoworkers are no longer necessary to bolt car parts to carriages – robots do it with speed and precision. Toll takers are the latest disappearing breed.
Workers who lose their jobs to progress face painful transitions, and pessimists throughout history have warned about technologies increasingly rendering human effort obsolete. Indeed, jobs can seem to vanish overnight after an entire industry or occupation adopts a laborsaving machine, presenting displaced individuals with difficult choices. They must either invest in a new skill or move into a low-skill, lower-paying job.
But in the long arc of history, technology is continually creating new jobs to replace the old ones.
“The cycle of job destruction and creation has produced a labor force where, over the long run, workers have generally found jobs – albeit jobs that largely did not exist 100 years ago,” concludes the Center for Retirement Research in the first of three reports on technology’s impact on older workers for the Retirement and Disability Research Consortium.
The changing nature of work encourages new forms of growth by expanding the economic pie. For example, about a third of U.S. workers used to be on the farm before being largely replaced by agricultural machinery like combines and threshers, the report said. But during and after World War II, new technologies adopted by industry supplied manufacturing and office jobs to the farmers who had migrated to the cities to work. Wages rose and the economy grew rapidly during this period of unprecedented abundance.
Another way that technology helps the economy is by making goods cheaper to produce and buy, freeing up demand for other products. For example, Americans spend 15 percent of their budgets on food – less than half of what they spent in 1900 before farms became fully mechanized. More money for cell phones. …Learn More
September 3, 2019
Second Careers Late in Life Extend Work
Moving into a new job late in life involves some big tradeoffs.
What do older people look for when considering a change? Work that they enjoy, fewer hours, more flexibility, and less stress. What could they be giving up? Pensions, employer health insurance, some pay, and even prestige.
Faced with such consequential tradeoffs, many older people who move into second careers are making “strategic decisions to trade earnings for flexibility,” concluded a review of past studies examining the prevalence and nature of late-life career changes.
The authors, who conducted the study for the University of Michigan’s Retirement and Disability Research Center, define a second career as a substantial change in an older worker’s full-time occupation or industry. They also stress that second careers involve retraining and a substantial time commitment – a minimum of five years.
The advantage of second careers is that they provide a way for people in their late 40s, 50s, or early 60s who might be facing burnout or who have physically taxing jobs to extend their careers by finding more satisfying or enjoyable work.
Here’s what the authors learned from the patchwork of research examining late-life job changes:
People who are highly motivated are more likely to voluntarily leave one job to pursue more education or a position in a completely different field, one study found. But older workers who are under pressure to leave an employer tend to make less dramatic changes.
One seminal study, by the Urban Institute, that followed people over time estimated that 27 percent of full-time workers in their early 50s at some point moved into a new occupation – say from a lawyer to a university lecturer. However, the research review concluded that second careers are more common than that, because the Urban Institute did not consider another way people transition to a new career: making a big change within an occupation – say from a critical care to neonatal nurse. “Unretiring” is also an avenue for moving into a second career.
What is clear from the existing studies is that older workers’ job changes may involve financial sacrifices, mainly in the form of lower pay or a significant loss of employer health insurance. But they generally get something in return: more flexibility. …Learn More
March 7, 2019
Graduates’ Pay Ranked for 1,650 Colleges
Decisions about which college to attend or degree to pursue are increasingly driven at least in part by this consideration: will I be able to pay back my student loans?
Countless things determine how much someone earns – smarts, rich or poor parents, high school or graduate degree, being in the right place at the right time. But LendEdu’s new ranking of starting salaries for graduates with bachelor’s degrees from some 1,650 U.S. colleges is essential information, especially when debt is the only option to finance college.
A degree is almost always worth the investment. Georgetown University estimates workers with a bachelor’s degree earn $1 million more over their lifetime than high school graduates. Post-secondary degrees have even bigger payoffs.
The salary rankings turned up some useful and quirky findings. LendEdu, a personal finance website for consumers that sells advertising to financial firms, compiled the salary data for the first five years of employment from payscale.com surveys.
- Ever hear of Harvey Mudd College? The typical recent graduate of this engineering school 40 miles west of Los Angeles earns a bit more ($85,600) than an MIT graduate ($83,600). Harvey Mudd is Silicon Valley’s No. 2 feeder school.
- Graduates overestimate what a degree is worth. The typical college student expects to earn $60,000 but earns only $48,400 in the work world. …
February 14, 2019
Careers Become Dicey After Age 50
A new study lays out all the difficulties older workers have holding onto a job so they can retire on their own terms – even when the economy is doing well.
Over the past quarter of a century, more than half of the older Americans who had been employed in stable jobs have been pushed or nudged out of employment at some point late in their careers. This could’ve happened due to a layoff, a bad supervisor, difficult or dangerous working conditions, inadequate pay or a missed promotion.
This finding from a Urban Institute study throws into question “the notion that most seasoned workers who are strongly attached to the labor force can remain at work and earn a stable income until they choose to retire,” the researchers said.
The study details the many challenges older workers are dealing with: …Learn More
November 13, 2018
Millennial Cities and Those Left Behind
Sumat Lam, a recent college graduate, was skeptical when his Silicon Valley employer transferred him to Austin, Texas. What he found was a high-tech mecca that defies the stereotypes of 10-gallon hats and Southern drawls.
Google, Apple and Amazon have established outposts in the “Silicon Hills” of Texas’ Hill Country. The young workers moving there are “bringing in their culture and influences from Boston and New York,” Lam told VOA News.
Taylor Hardy lives in Dayton, Ohio, but she might as well be living on a different planet.
This young nursing assistant can barely eke out a living. Her plight is shared by too many others in this former industrial hub that has been in a downward spiral that accelerated after plant closings by National Cash Register and General Motors during the last recession. The loss of high-quality blue-collar jobs contributes to Dayton’s 35 percent poverty rate – nearly three times the national rate.
Hardy, a single mother, and the boyfriend who lives with her, earn a total of $27,000 a year – she has $5 in her bank account. “I work all these hours, and I miss all the time with my kids to make … nothing,” she said in the PBS Frontline documentary “Left Behind America.”
The contrasting fortunes in these two cities – Austin versus Dayton – are playing out around the country. Young professionals are streaming into Millennial boomtowns from San Francisco to Boston, where growth seems almost unstoppable. But outside these hot spots are struggling Midwestern and Northeastern cities that have become deserts, devoid of opportunity for their young adult residents.
“Historically, many young American adults have left their hometowns to chase better opportunities,” said Kali McFadden, senior analyst at Magnify Money. “But not all millennials have the same work opportunities,” she said about her firm’s new city ranking of the employment available to young workers. …Learn More