Posts Tagged "pandemic"
September 17, 2020
2020 Disability Blogs Tackle Myriad Issues
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:
Same Disability: Some Have Tougher Jobs
Same Arthritis but Some Feel More Pain
Disabilities and the Toll of Irregular Hours
Economy: …Learn More
September 3, 2020
Relocating Can Boost Living Standards
COVID-19, by rearranging work arrangements, is allowing people to rethink where they live.
As the virus started to spread in Manhattan last spring, some residents fled the city and began snapping up houses in Westchester County and on Long Island. There is preliminary evidence some people are moving farther afield, to rural areas where small populations create the potential for lower COVID-19 transmission rates.
In a Pew Research Center survey, about one in five Americans said the pandemic had either prompted them or someone they know to relocate.
The map below shows the big changes in living standards that can accompany a move from a high- to a low-cost part of the country. In each location, the Tax Foundation calculated each region’s purchasing power, based on what $100 will buy, on average, nationwide.
For example, $100 will purchase $75 to $80 worth of goods in Manhattan. By moving to Upstate New York or New Mexico, someone who keeps her job and works remotely can increase her purchasing power to around $110 – the equivalent of at least a 37 percent increase.
Typically, an area’s cost-of-living is correlated with local incomes. For example, employers must pay more to attract workers to high-cost areas. But not in North Carolina, which has “higher-than-average incomes without corresponding higher-than-average prices,” the Tax Foundation said.
Offsetting the benefits of relocating to a low-cost area is the employment risk. If a remote job evaporates, it may be difficult to find a suburban or rural employer that pays as much or an employer in a larger city willing to hire someone new to work remotely. Poor wifi connections are a common problem in rural areas.
Moving is a complex decision with an array of considerations, from the health benefits to the difficulty collaborating with coworkers over Zoom. But what seems clear is that working remotely is, for many, becoming the new normal. …Learn More
August 18, 2020
Recession’s Hit to Cities Varies Widely
The COVID-19 recession is unlike anything this country has seen.
If the second-quarter contraction were to continue at the same pace for a full year, the economy would shrink by a third! This is the deepest downturn since the Great Depression, and low-income Americans are feeling the brunt of it.
What makes this recession unique, however, is that the low-income people living in the most affluent metropolitan areas are worse off than low-income residents of less affluent cities, Harvard economist Raj Chetty explained during a recent interview on Boston’s public radio station, WBUR.
“What’s going on is that affluent folks have the capacity to self-isolate, to work remotely, to not go on vacation,” he said. “So in affluent areas, you see enormous drops in consumer spending and business revenue.” In these areas, more than half of the lowest-income workers have lost their jobs, and many of them worked in small businesses, he said.
In less affluent cities, people have to go to work and “are out and about more, and business revenue hasn’t fallen nearly as much,” he told his radio host. “In previous recessions, we haven’t seen those sort of patterns.”
Chetty’s point is demonstrated by comparing what happened to consumer spending this year in San Francisco and Fresno, California, on the tracktherecovery.org website he and other economists have created. (Visitors can sort the spending data by state, industry, and consumer income levels, as well as by city.) …Learn More
July 21, 2020
Pandemic Puts More Retirements at Risk
Americans’ retirement outlook has gone from bleak to bleaker.
The unemployment caused by COVID-19 has pushed up the share of working-age households not able to afford their current standard of living in retirement from 50 percent to 55 percent, according to a new analysis by the Center for Retirement Research, which sponsors this blog.
The analysis updates a previous estimate, based on 2016 data, to include the harmful effects of surging unemployment. The researchers estimate that perhaps 30 percent of workers – far more than is reflected in the monthly jobless rate – could be affected by layoffs now and in the future. They did not factor in the recession’s impact on the housing and financial markets, which could make things worse.
Unemployment hurts retirement in a variety of ways. Laid-off workers’ paychecks vanish immediately, but they may also earn less in the next job. The depressed earnings, over months or years, reduce the money flowing into their 401(k)s, and the amount they’ll receive in pensions and future Social Security benefits. It may also force some to spend down savings that, had they not lost their jobs, would’ve been preserved for retirement.
Interestingly, the impact on low-income workers is mixed. In one way, they’re protected by Social Security’s progressive benefit formula, which will replace a higher percentage of their earnings as their lifetime earnings decline. But low-income workers have had more layoffs, which widens the gap in their retirement savings – between what they can save and what they should be saving – more than for higher-income people.
The 2020 recession will impact retirement “in a very different way” than the Great Recession, the researchers said. This time, “the destruction is occurring more through widespread unemployment and less through a collapse in the value of financial assets and housing.” However, the lessons of the previous recession can’t be dismissed either. …Learn More
July 2, 2020
Recession Destabilizes Boomers’ Finances
The COVID-19 recession has changed everything.
This extreme disruption in our lives is always top of mind, which was reflected in our most widely read articles so far this year, based on the blog’s traffic.
Baby boomers, their retirement plans having been deeply affected by the Great Recession, are once again reassessing their finances. One popular article explained that the boomers who were in their early to late 50s during the previous recession lost about 3 percent of their total wealth at the time. This put their retirement planning at a distinct disadvantage compared with earlier generations in their 50s, whose wealth, rather than shrinking, grew 3 percent to 8 percent. The current recession is the second major setback in just over a decade.
Prior to the pandemic, readers liked articles about making careful retirement plans. Post-pandemic, the most popular article was about laid-off boomers desperate for income who may have to start their Social Security prematurely. The retirement benefits can be claimed as early as age 62, but doing so locks in the smallest possible monthly Social Security check – for life.
Even before Millennials were hit by the recession, they were already farther behind older generational groups when they were the same age. One article explained that the typical Millennial had just $12,000 in wealth. They are “the only generation to have fallen further behind” during the pre-pandemic recovery, the Federal Reserve said.
Here are a dozen of this blog’s most popular articles for the first half of 2020. They are grouped into three topics: COVID-19 and Your Finances, Retirement Planning, and Retirement Uncertainties.
COVID-19 and Your Finances:
Social Security Tapped More in Downturn
Lost Wealth Today vs the Great Recession
June 30, 2020
COVID: The Challenge for Older Workers
In anticipation of rambunctious children returning to the classroom in the fall, older teachers are sounding alarms about how challenging it will be to make the schools safe for themselves, as well as the children and families.
Their fears about going back to work in a pandemic are shared by older workers around the country with chronic conditions, which increase the mortality rate for people who contract COVID-19.
More than half of U.S. workers who are between ages 55 and 64 are in jobs that can’t be done remotely, a new study estimates. Their flexibility to work at home isn’t much different than younger adults.
But older Americans who are weighing whether to return to work face a dilemma that is of less concern to young, healthy workers.
The older workers must choose between “health risks – returning to work before the virus is under control – or economic risks – delaying work until the environment is safe, which may exhaust their resources,” concluded researchers at the Center for Retirement Research, which sponsors this blog.
Jobs that can’t be performed at home were identified in the study by 14 specific tasks, ranging from interacting with the public and handling machinery to rarely using email and standing or walking for most of the workday.
By linking information about jobs to individuals in a national survey, the researchers reported on the ability to work remotely based on the characteristics of the workers themselves. They found that women, who often gravitate to jobs that give them more flexibility or the ability to work part-time, are more likely to be in jobs they can do at home – think about travel agents (85 percent are women) and freelance writers (67 percent).
The analysis also confirmed something the media have reported anecdotally: working remotely is a perk of being a well-paid professional. About six in 10 workers in the highest earnings bracket can do their jobs at home, compared with just over three out of 10 workers in the lowest two earnings brackets. …Learn More
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