Posts Tagged "labor force"

Caregiving’s Toll on Work Happens Quickly

Caregiving often wins out in the struggle between work and fulfilling one’s obligation to a family member or friend who needs help.

Researchers have documented the phenomenon of workers being forced to eventually leave their jobs so they can devote more time to the person in their care. But the impact on the work lives of the people who are new to their caregiving duties is often dramatic and happens very quickly, a new study finds.

Employment levels for workers who become caregivers declined by 6 percent within a year after they started, and most of the drop occurred because they left the labor force entirely, according to the analysis linking Census Bureau surveys on informal care with the Social Security Administration’s employment records for working-age adults.

The decline in employment may occur as early as four months after caregiving starts, based on a second analysis using only the Census data.

Caregivers who decide to stop working are also more likely to go on federal disability – either right away or years later. Many of the people receiving the benefits are older people who, despite their disabilities, had persisted in their jobs. Once they were needed by a family member, they may have decided to apply for disability to offset some of the loss of income from working.

Indeed, the largest employment declines were experienced by people over age 62, who often have an elderly parent or spouse in need of care – and sometimes both. For many of them, leaving a job coincided with claiming their Social Security benefits in an indication that caregiving is often pushing them to retire. Workers between 45 and 61 saw a smaller decline in employment after becoming caregivers.

Men’s and women’s paths from worker to caregiver are different, however. Women report small declines in their employment levels, and they return to the labor force relatively quickly. The impact on men is more dramatic and long-lasting. …Learn More

Woman in a dark place

Opioids Make it Harder, Not Easier to Work

The twin goals of prescribing opioids to workers with a bad back or arthritis are to alleviate their pain and keep them employed.

But the use and abuse of opioids can cause poor memory, extreme drowsiness, and an inability to engage in normal social interactions – all of which limit workers’ ability to function. Opioids also have serious physical effects outside of the dependence itself.

The resulting detachment from the labor market, revealed in a new research study, calls into question any benefits the medications have.

Between 2012 and 2018, average employment declined by nearly 2 percent for every 10 additional opioid prescriptions per 100 adults in a county-sized area, the researchers found. Wages also dropped by 6 percent, indicating that the opioid users who do remain employed are less productive.

The painkillers had more permanent consequences, too, when workers, unable to cope, left the labor market for good. The rate of applications for federal disability benefits increased sharply in the areas with higher prescribing rates, according to the study funded by the U. S. Social Security Administration, which runs the disability program. …Learn More

UI Benefits Can Get Caregivers Back to Work

Elderly coupleWhen older workers are laid off, the timing of the career disruption could not be worse – when they should keep working and saving for retirement. Their situation is even more precarious if a parent or spouse is in need of care.

A new study shows that people who become unemployed mid-to-late career are more vulnerable to being pulled into the demands of caregiving, which can derail their efforts to find another job.

Intensive caregiving spells usually kick in about four months after a job loss and can continue for up to 12 months – and possibly longer – according to the research, which was based on U.S. Census surveys of the unemployed prior to the pandemic.

“Family caregiving needs have the potential to turn short-term employment shocks into longer-run decreases in labor force participation, impacting the economic security” of future retirees, concluded Yulya Truskinovsky at Wayne State University.

But she also uncovered another factor in workers’ calculations: the generosity of unemployment benefits, which vary dramatically from state to state. The federal and state governments share the cost of the benefits, but states set the minimum and maximum benefit levels. During the pandemic, for example, the weekly maximum in Massachusetts was 3 1/2 times more than Mississippi’s, far exceeding the difference in the two states’ cost of living.

More generous unemployment benefits could cut one of two ways. They might give the worker enough income to support being a caregiver rather than returning to the labor force right away. The downside of taking so much time off is that it could be harder to eventually find a new job.

But the researcher finds that the opposite occurs: more generous benefits sharply reduce the likelihood that someone takes on caregiving duties after losing a job. Benefits that replace more of a worker’s earnings may make it easier to hire a professional caregiver or continue paying an existing one so the worker can focus on a job search. …Learn More

newborn baby at hospital

Newborns’ Health Issues Affect Moms’ Work

One in five babies born in U.S. cities is in poor health, with profound and lasting impacts on their own and their mother’s lives.

Researchers reached this conclusion after following nearly 3,700 infants and their mothers through Princeton’s Fragile Families Survey, which checked in on the families six times between the child’s birth and age 15. The survey was fielded in cities with a 200,000-plus population, and the babies’ most common medical conditions were low birth weight, premature birth, and genetic or other abnormalities, such as difficulty breathing.

A body of research on the long-run prospects for children with disadvantages – whether medical or socioeconomic – has established that they have far more problems as adults. Consistent with other prior research, a study by Dara Lee Luca and Purvi Sevak at Mathematica also found an immediate consequence for newborns in poor neonatal health: a greater likelihood of having a disability such as a motor or speech disorder or neurodevelopmental problems such as ADHD and autism.

Within their first year, the infants often qualified for federal cash payments to their mothers under Supplemental Security Income for Children (SSI).

The inordinate amount of time spent caring for babies in poor neonatal health takes an enormous toll on the mothers, the researchers found. While caregiving didn’t seem to impact their mental health, their ability to hold down a job was significantly compromised. The mothers of babies in poor health worked fewer hours, especially when the children were very young, and were more likely to drop out of the labor force entirely. …Learn More

colorful arrows

What the Research Can Tell us about Retiring

It’s difficult to envision what life will look like on the other side of the consequential decision to retire.

But research can help demystify what lies ahead – about the decision itself, the financial challenges, and even the taxes. Readers understand this, as evidenced by the most popular blog posts in the first three months of the year.

Here are the highlights:

The retirement decision. The article, “Retirement Ages Geared to Life Expectancy,” attracted the most reader traffic. Myriad considerations go into a decision to retire. But a sense of whether one might live a long time – because of good health or simply seeing that parents or neighbors are living unusually long – is a compelling reason to postpone retirement either to remain active or to build up one’s finances to fund a longer retirement.

A recent study found that as men’s life spans have increased, they have responded by remaining in the labor force longer, especially in areas of the country with strong job markets and more opportunity. This is also true, though to a lesser extent, for working women.

The planning. The second most popular blog was, “Big Picture Helps with Retirement Finances.” It described the success researchers have had with an online tool they designed, which shows older workers the impact on their retirement income of various decisions. When participants in the experiment selected when to start Social Security or how to withdraw 401(k) funds, the tool estimated their total retirement income. If they changed their minds, the income estimate would change.

The tool isn’t sold commercially. But it’s encouraging that researchers are looking for real-world solutions to the financial planning problem, since the insights from experiments like these often make their way into the online tools that are available to everyone.

The taxes. It’s common for a worker’s income to drop after retiring. So the good news shouldn’t be surprising in a study highlighted in a recent blog, “How Much Will Your Retirement Taxes Be?” Four out of five retired households pay little or no federal and state income taxes, the researchers found. But taxes are an important consideration for retirees who have saved substantial sums. …Learn More

Is Job Automation Connected to Disability?

Grocery store clerk with a mask on

Manufacturing workers file more applications to the federal disability program than any other workers. What seems new is that jobs like administrative assistant and retail worker aren’t that far behind.

Is one possible explanation that the computerization of once-routine occupations like these plays a role in decisions to apply for disability benefits?

Consider the example of a retail worker with a bad back who is laid off, or perhaps she quits because she struggled to handle the cognitive challenges of increased automation. Even simple tasks such as processing customer transactions or locating a product at another store now require computer skills. And the worker’s skills may not match up with the technical qualifications needed to find a new job in a labor market where routine jobs are rapidly disappearing.

Given her disability, the worker might decide that her best – or only – option to ensure she has some income is to apply for disability benefits.

Job Automation ChartA study by Mathematica researcher April Yanyuan Wu did not find direct evidence that this skills mismatch triggers applications. But her findings suggest it might be a factor.

Wu provided new statistics on the types of jobs once held by disability applicants and on the changes over time in the job attributes, compared with the changes in job attributes facing the general working population.

Between 2007 and 2014, for example, the share of the applicants’ former jobs that required computer skills rose by 18 percentage points, outpacing the increase for the labor force overall. At the same time, jobs requiring moderate cognitive ability also increased more for people with disabilities than it did for all workers.

Stress is a telling indication of the challenges of increased job automation. The growth in high-stress jobs once held by people with disabilities was much larger than for workers overall, according to the study, which was funded by the U.S. Social Security Administration. …Learn More

Expect More Moms to Sacrifice Careers

Woman working from home

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.

Child Care for men and womenLast 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