Posts Tagged "workers"

Working Multiple Jobs to Make Ends Meet

If people need to work and can work, they will work. That’s my takeaway from a new set of data that sketches a clearer picture of U.S. workers who are holding down multiple jobs.

US workers with more than one jobNearly 8 percent of workers had two or more jobs in 2018, the latest year of data available from the U.S. Census Bureau. The data also show that holding two or more jobs becomes more common during economic expansions, when jobs are plentiful, and falls during recessions, when the opportunities dry up.

But the longer-term trend is up: the share of people holding multiple jobs has slowly increased over the past two decades. In a recent webinar, Census Bureau economist James Spletzer provided a couple of reasons.

First, the country has lost millions of manufacturing jobs over several decades. They have been replaced by lower-quality jobs in retail and in service industries like health care, hotels and food preparation – and that’s where multiple job holders tend to work.

A second, related reason for working in multiple jobs is the “stagnation of earnings at the lower end of the earnings distribution,” Spletzer said. …Learn More

UK Pension Reforms Show Some Promise

woman in the UK on her phone

Unlike the United States, the United Kingdom has implemented bold reforms to its retirement system over the past decade.

Two of the biggest changes were gradual increases in the minimum age for collecting a pension under the national social security program and requiring private employers to automatically enroll their workers in an employee savings plan.

The goals of the reforms were to keep government spending in check and encourage individuals – who are living longer – to work longer, while helping them build up more private savings through employer-based plans. On balance, the notion is that workers will end up better prepared financially when they retire. Time will tell how successful these reforms will ultimately be.

But, so far, the results have been somewhat promising, concludes an Institute of Fiscal Studies report on workers’ changing expectations and attitudes about their retirement prospects.

In a major reform to private-sector plans, lawmakers started expanding coverage in 2012 by requiring that employers – the largest ones were first –  automatically enroll workers earning more than £10,000 (about $14,000) in a retirement savings plan. The total contributions to the plans must now be at least 8 percent of each worker’s earnings, with employers providing at least 3 percent.

This reform seems to have enhanced workers’ sense of financial security. In 2017, 78 percent said in a survey that they expect to get some retirement income from an employer savings plan – up from 63 percent in 2013. And while workers are permitted to opt out of the plans, they are doing so at consistently low rates.

On the retirement front, the minimum age to collect benefits under the U.K. social security system, the National Insurance Scheme, has risen dramatically for women. A decade ago, they could collect a pension at 60, but that had increased to 66 by last year. They are now in line with men, whose minimum age was 65 for many years and also rose to 66 last year. In the future, the increases are expected to continue: a 50-year-old worker would not be able to collect his pension until he is 68. …Learn More

Street worker working at night

Public-Sector Disability is Fairly Generous

About one in four state and local government employees – some 6.5 million people – do not participate in the Social Security system. They get their disability insurance, as well as their pensions, from their employers.

Whether the coverage is more or less generous than Social Security disability depends on the individual worker’s circumstance and how the state or local employer calculates benefits. But a new study concludes that public-sector workers who have a disability generally receive benefits that are at least as generous as the federal benefits.

To compare them, researchers at the Center for Retirement Research had to construct a database with each state’s and locality’s eligibility requirements and benefit payments. The sample consisted of 67 different disability programs, which cover a majority of the U.S. workers who don’t pay into Social Security.

The main thing Social Security and the public-sector have in common is eligibility – a 35-year-old must have five years of employment to receive federal disability and four to six years under most public-sector programs. One way they differ is that most state and local governments have a more liberal definition of what qualifies as a disability. Social Security pays benefits to a worker who can no longer do any job. Public-sector benefits go to a worker who can’t continue doing his current job.

The disability benefits are also calculated differently. Social Security’s progressive formula is the most generous to low-wage workers, because it replaces a higher percentage of their past earnings. But each state and local government uses the same formula for all of its workers, regardless of their earnings, and the formula gives more credit to employees who have been with their employer the longest.

What does all this add up to? The older public-sector workers, who are most at risk of developing a disability, receive relatively generous protection under the state and local programs, because the eligibility requirements are less strict than Social Security’s and because the benefits for most long-tenured employees replace a higher percentage of their earnings.

Older people who moved into the public sector late in their careers are in a different situation. …Learn More

Market Drops Hit Those Who Don’t Invest

Photo of the cast of Sweat

Photo by T. Charles Erickson

How fitting that I would see the play “Sweat” on Feb. 28 – a Friday night at the end of a week in which the stock market dropped 12 percent and the specter of recession reared its ugly head.

The Pulitzer Prize-winning “Sweat” – I saw the Boston revival – is about the havoc the boom-bust economy and falling financial markets wreak on working people’s employment security and their personal lives. In fact, the timeline of the play is bracketed by 2000, when the stock market crashed, and 2008, when it crashed again.

At the beginning of each scene, a voice-over broadcasts the day’s bad financial news. The stock market never crosses the lips of the characters in the play, which is set in a local bar that is the social center of the working class town of Reading, Pennsylvania. Their chief concern is the fate of their jobs at the steel tubing plant. But the unspoken stock market is an invisible character shaping their plight.

Playwright Lynn Nottage got her inspiration for “Sweat” during visits to Reading over 2½ years. Two female characters and each of their sons work at the plant – very typical of a factory town. The bartender used to work there until he injured his leg. An immigrant who is a busboy at the bar briefly gets a shot at the American dream as a scab worker when the company locks the union out of the plant. There is tension between the immigrant and the long-time residents, and between the assembly line workers and the one worker who is promoted to management. But in the end, all of their lives are tragically upended by the plant closing.

Factories began shutting down in the 1980s, in part because U.S. manufacturers learned they could hire workers at much lower wages overseas. But manufacturing’s long-term decline was perpetuated by the 2001 recession, which was triggered by a market drop, and a second recession that began with the 2008 market collapse.

Which brings us to 2020. …Learn More

Photo of the inside of a computer

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

Photo of an automotive production line.

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

Photo of a waitress

When Your Health, Job Demands Clash

Home health aides, nurses, teacher assistants and servers do a lot of lifting or standing for long periods, which takes a toll on their bodies.

For a middle-aged waitress, it might be a bad knee. For a baby boomer caring for an elderly person, it might be the strain of lifting a patient out of a chair.

In a new study, researchers calculated the percentage of workers who cite health-related obstacles to performing their jobs for nearly 200 occupations. A ranking of these percentages proved a fairly reliable indicator of what one would expect workers to do. Workers in the occupations with the largest share of people having difficulty performing their jobs were more likely to quit work and file for Social Security Disability Insurance (SSDI).

The chart below shows the occupations with the highest percentages of health-related obstacles. For example, some of the most hazardous jobs are welders and brazers, who assemble equipment made of aluminum. …Learn More