Posts Tagged "laid off"

A Downwardly Mobile Boomer Survives

The unemployment rate has rocketed to double digits. But older workers’ struggles in the job market are not new.

An Urban Institute study, reported here, estimated that about half of workers over age 50 left a job involuntarily at some point between 1992 and 2016 – a period that included strong economic growth and two recessions. After the workers found new employment, their households were earning just over half of what they earned in their previous jobs, researcher Richard Johnson told PBS’ NewsHour.

The baby boomers being laid off now might relate to Jaye Crist, who was featured in this NewsHour video last February when unemployment was still at record lows. He had been a manager at a national printing company for three decades – until his 2016 layoff. Through sheer determination, he found a full-time job packing and delivering printed materials to customers for a print shop in Lancaster County, Pennsylvania. But his income dropped sharply.

“It’s frustrating that, in my mind, somebody who has done the things you were told as a kid you need to do – stay at a job, work, learn, be helpful, get promotions – and then you find yourself, at this point, that your career doesn’t mean [anything],” Crist said in the pre-pandemic video.

“You just do whatever you have to do to keep everything else afloat,” he said.

With the country now in a recession, I checked in with Crist to see how he’s doing. His financial situation deteriorated further after Pennsylvania shut down the economy to contain the virus. He briefly lost his three jobs – at the printing company and two part-time jobs, at a local brewery and a workout gym.

He was relieved when the printer brought him back in April from a three-week furlough after the company received a stimulus loan under the federal Paycheck Protection Program. But business is slow, and Crist worries he might lose the job again. “Knowing that you’re almost 60 years old,” he asked, “now what do you do?”

The gym is also reopening, but it’s unclear how much he can work since he used to be on the night shift and the gym will no longer be open 24 hours a day. He also returned to the brewery to handle takeout orders but it, like many eating establishments, is struggling to make it at a time of social distancing.

Prior to the pandemic, Crist had already gone through many of the financial struggles boomers are facing today. With his wife unable to work, he said he depleted his 401(k) after his 2016 layoff.  He was having difficulty keeping up his mortgage payments and paying part of his daughter’s college loans, and now it’s even harder.

He said he can’t imagine being able to retire. “I’ll be working and paying for stuff until I can’t.”Learn More

Puzzle of heads

Disability Applications Spike in Recession

During the Great Recession, the record numbers of Americans who applied for disability included many people who lost their jobs – and it might happen again as the COVID-19 recession plays out.

A 2018 study estimated that 1 million people applied who would not have done so if there hadn’t been a recession. By October 2009, as the jobless rate was peaking, the additional applicants increased the total applications to the U.S. Social Security Administration by 16.5 percent.

The average age of these applicants was 53, and they tended to have impairments that were musculoskeletal or cognitive in nature. Because these impairments are less severe, they were more likely to be denied benefits, often resulting in an appeal.

In contrast, the people who would’ve sought disability benefits even in a strong economy tended to have serious medical conditions such as Crohn’s or chronic kidney disease that usually qualify them automatically under the disability program’s vetting system.

Ultimately, among the applicants who applied in response to the recession, 42 percent were awarded benefits, according to the study funded by the Social Security Administration and based on an analysis of the agency’s disability records.

When they did receive benefits, they were more often awarded on the basis of having a functional limitation and no transferable skills. As a result, many people who used to work were nevertheless approved for benefits, because their options for transferring their skills from their old job to a new job were limited.

Adding so many people to the disability system carried a steep price in terms of an increase in administrative and benefit costs. But the formerly productive workers also paid a price.

“Once people qualify” for disability benefits, the researchers said, “they rarely re-enter the labor force.” …Learn More