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Posts Tagged ‘Workforce’

Rising costs, falling income, and waving at the Rockefeller helicopter

In aging, behavior, business, cities, culture, domestic life, journalism, life, Money, urban life, US, work on April 25, 2013 at 11:02 am
Money Queen

Money Queen (Photo credit: @Doug88888)

By Caitlin Kelly

Here’s an honest, powerful and deeply depressing blog post about what American life when your income is falling and costs going through the roof:

Hubby left and again, he had to stop off at the gas station to fill up his car.  He drives around 150 miles per day for his job.  And yes! he drives a fuel efficient car that gets between 35 and 40mpg.  But it’s not working out like we planned.  With the cost of gas at over $4.15 a gallon (and still rising) and the tightness of available money, it’s becoming a nightmare, with no end in sight.

While at the gas pump, the woman in the next booth came over to my husband and asked him if he had any money to give her.  “I need money to buy gas” she said “to get to work.  I don’t have any money to buy gas to get to work nor even come back from work and get home.  Do you have any money to give me, man?” DH then realized the reality of our own financial predicament. He told the woman that he had just been fighting with his own wife over the tightness of money and our own inability to buy food and gas and pay looming tax bills.

The only money I have that I can give you is this dollar bill,” he said and handed the woman the paper dollar bill I found in the parking lot yesterday.

I had breakfast the other morning, (total cost $11.00 for both, plus $1.00 for parking), with a friend who is single and freelancing and faces monthly living costs of $4,000; just her rent and health insurance is $2,000 every month. She has no savings anymore, having won and lost several jobs in our field over the past few years.

She has worked her whole life, like me, in journalism, and at 58 knows that the odds of finding a new full-time job that allows her to meet her living costs and save for retirement are slim-to-none.

Going back to college? For her, financially impossible. Taking some sort of quick, cheap credential? Maybe — but, really, given a choice of a 30, 40 or 58-year-old, who’s going to hire someone that age?

For millions of hard-working, educated, skilled and experienced Americans, a hand-to-mouth existence is the new normal. Especially those over the age of 50.

Here’s a powerful recent story from the Los Angeles Times about how work, even for the most highly educated, is changing for the worse:

Matt Ides has a doctorate in history and extensive teaching experience. Unable to find a full-time, tenure-track job, he took an adjunct teaching position at Eastern Michigan University, where he was paid $3,500 per class. He taught five classes one semester and four the next. One more class and the university would have had to consider him a full-time employee under university policy.

If not for his girlfriend’s salary, he said, “I would have had to live in a one-room apartment and eat soup every day.”

I moved to the U.S. in January 1988. As a brand-new driver, I was exquisitely attuned to the costs of owning, insuring and fueling a vehicle. Gas, then, cost 89 cents a gallon — today, it’s between $3.90 and $4.15 or more.

The price of groceries has shot through the roof. The cost of commuting to New York City, a daily necessity for my husband who works there, and for me to meet with clients and actually enjoy Manhattan occasionally, just rose, again, by 10 percent.

Jose and some others at his workplace are represented by a union, initially offered a 0 percent (yes) raise by his employer, The New York Times. They won a fat 2 percent a year — and the Times is considered, by some, a career pinnacle, a place you work long and hard to achieve.

I recently pulled out some old paperwork, and found an invoice from 1997 — 16 years ago — for $900. I just accepted an assignment last week from the Times for $900.

Nothing, anywhere — shoes, clothes, food, gas, insurance, dental bills, haircuts — costs what it did 16 years ago. Anyone attending university in the U.S. knows this firsthand, as tuition costs have skyrocketed, while incomes are stagnant and jobs hard to find.

Here’s the story of a graduate student at Duke, (named for the tobacco fortune family who founded it), who lived in a van in a parking lot so he could actually afford school. In a van.

Money - Black and White Money

Money – Black and White Money (Photo credit: @Doug88888)

Few of us are less educated, more stupid, more lazy or unwilling to work hard than we were 10 or 15 or 20 years ago.

Stagnant and falling wages for most of us are simply killing our desire, and ability, to get ahead of our monthly basic costs– to save for short or long-term needs, whether retirement, car repair, education, medical bills or (imagine), a vacation.

I’ve thought about moving far upstate, where we could probably buy an old house for cash and pay very little in property taxes. Socially? Death. Professionally, nothing would be there for my husband, who makes almost three times what I do. Making an even longer commute — with less time for himself and for us? Not a great option either.

So, moving isn’t really a smart choice. Neither Jose or I, (both award-winning veterans in our field), have advanced degrees, so no teaching jobs are open to us, even as a poorly-paid adjunct.

I had lunch recently with an editor who did exactly that, moved to the Catskills with her husband and baby. She lasted two miserable, lonely, broke years and now lives back in Manhattan.

We could, I suppose, go to a much smaller, rural place somewhere very far away in the Midwest — distant from our friends, colleagues, neighbors and social networks. But I tried rural life, for 18 months when I was 30. Sorry, for those who thrive on it, I hated it, never so lonely, broke and miserable in my life. Unless in that other place you have dear friends, loving family and/or steady work that will really help you thrive, I don’t see much appeal in moving anywhere else at this point.

And every day, right over my head, I hear the sound of income inequality — as a helicopter thud-thud-thuds across the sky very close to my balcony. It’s a Rockefeller, flying to work in Manhattan, 25 miles south; their huge, gated estate lies about a 10-minute drive north of our town.

How’s things with you these days financially?

Are you as worried as I am?

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FiredoverFifty.com: It’s Time!

In behavior, business, Money, news, women, work on September 21, 2010 at 12:14 am
Unemployment rate in Europe (UE) and United St...
Image via Wikipedia

If you’ve been fired and you’re over 50, you’re screwed.

So says the front page of The New York Times:

Since the economic collapse, there are not enough jobs being created for the population as a whole, much less for those in the twilight of their careers.

Of the 14.9 million unemployed, more than 2.2 million are 55 or older. Nearly half of them have been unemployed six months or longer, according to the Labor Department. The unemployment rate in the group — 7.3 percent — is at a record, more than double what it was at the beginning of the latest recession.

After other recent downturns, older people who lost jobs fretted about how long it would take to return to the work force and worried that they might never recover their former incomes. But today, because it will take years to absorb the giant pool of unemployed at the economy’s recent pace, many of these older people may simply age out of the labor force before their luck changes.

In my new book, “Malled: My Unintentional Career in Retail”, I include the depressing, terrifying stories of two women, both in their 50s and single, who have plunged from middle-class incomes, hopes and expectations, to frustration and poverty. One, formerly earning $35,000 working for (wait for it) Habitat for Humanity, now makes $7.25 an hour as a retail clerk at a southern department store.

She is furious, and ashamed that she must rely on her 81-year-old mother for financial help every month.

What I don’t get is this — age discrimination is, technically, illegal. Yet, as usual, anyone who’s played that shave-the-resume/dye-their-hair game knows it’s happening every single day in every single state in the nation.

The U.S. is a country predicated on the mythology of the individual who does it all by themselves. Bootstrap city!

As if.

Many forces are shoving 50-somethings to the economic margins, in the very years they are hardest-hit by the trifecta of their own need to save for retirement, the increasing needs of their aging/ill/distant parents and their own college-age or young adult children — the ones saddled with educational debt who are returning to the family nest, wanted or not.

It is an unmitigated disaster.

And interest rates are now so absurdly low that retirees can’t live on their savings — and many are now seeking jobs to supplement their paltry incomes from hard-won, carefully-saved investments. More competition for fewer jobs!

If the Tea Partiers can get it together, why not these millions of fired 50-somethings?

Is there no collective political will that might conjoin them into concerted action?

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Wary Workers Now Prefer Self-Employment, Stats Say

In business, work on April 21, 2010 at 7:07 pm
Interior of an Office

Image by Galt Museum & Archives on The Commons via Flickr

Interesting story in The New York Times about people who have been so burned by the recession, the vicious not-so-merry-go-round of hiring and firing they prefer not to have a full-time job:

What is known as “contingent work,” or “flexible” and “alternative” staffing arrangements, has proliferated, although exact figures are hard to come by because of difficulties in tracking such workers. Many people are apparently looking at multiple temporary jobs as the equivalent of a diversified investment portfolio.

The notion that the nature of work is changing — becoming more temporary and project-based, with workers increasingly functioning as free agents and no longer being governed by traditional long-term employer-employee relationships — first gained momentum in the 1990s. But it has acquired new currency in this recession, especially among white-collar job seekers, as they cast about for work of any kind and companies remain cautious about permanent hiring.

In just one snapshot of what is going on, the number of people who describe themselves as self-employed but working less than 35 hours a week because they cannot find full-time work has more than doubled since the recession began, reaching 1.2 million in December 2009, according to the Bureau of Labor Statistics. Economists who study flexible work arrangements believe that the increase has been driven in large part by independent contractors like Mr. Sinclair and other contingent workers, struggling to cobble together whatever work they can find.

As the economy continues its halting recovery and employers’ confidence remains shaky, economists believe that it is likely that the ranks of these kinds of workers will continue to grow.

I recently spoke to a class of journalism students at Emerson College in Boston. The night’s final question, technically off the topic of my visit (ethics) was striking: “Aren’t you freaked out by not having a job? Being freelance all the time?”

No.

Like these people in the Times piece, I’ve been laid off from a few jobs, instantly and, a few times without clear warning, severed from well-paid work I enjoyed in my field. For me to sign up again, willingly and with a real sense of excitement, I’m not sure which employer would be The One. Loyalty doesn’t matter. Seniority, nope. Multiple graduate degrees? Not those either. The only protection against being canned, and falling deep into poverty, is saving the biggest amount of cash you possibly can and keeping your overhead as low as you and your loved ones can tolerate.

I was lucky in growing up in a household where no one ever had a “real” job — i.e. a steady, solid paycheck, a pension, paid sick days or vacation. Everyone worked as a creative freelancer: film, journalism, television. You live check to check. You get to know a really good accountant and try very hard not to get behind on your tax payments since it’s pay as you go. We drove (good) used cars, bought art and cashmere and plane tickets overseas in better years and enjoyed them in lean ones.

I learned young that even the best ideas you try to sell freelance can be ignored or stolen or shot down by people collecting paychecks because…they feel like it. They owed us no allegiance and we all knew the deal. It’s a painful and expensive lesson to learn instead mid-life and mid-career, as millions now have in the recession. Like a wave of bitter divorce(e)s, some of us aren’t eager to trot back up to the altar of full-time work. It’s too dangerous to put all your eggs in one basket.

Are you still in a full-time job? How secure — if at all — do you feel?

If you work for yourself, how’s that going? Do you feel more secure knowing it’s all up to you?

What Does Your Lanyard Say?

In business on September 4, 2009 at 8:14 am
{{de|Pfeifenschnur mit Pfeife, Pfadfinder Schw...

Image via Wikipedia

In the old days, this is what a lanyard looked like, something official that bespoke clearly-recognized authority — a lifeguard, an umpire, a coach. These days, seems like everyone everywhere is wearing one, usually with the identity of their employer stamped on it, or maybe an expensive conference they’re attending.  Schools and colleges are using them. I get it, it’s nice to feel like you belong, to show you’re a member of some cool clan. You can also feel a little left-out these days if you don’t walk around with someone’s name and logo hanging around your neck.

One British town has started using them to foil purse and wallet-snatchers. Here are some gorgeous beaded ones.

But still. As we head into the Labor Day weekend in the worst recession in decades, I wonder what all the rest of should be wearing, if anything — you know, the 1/3 of the workforce that is self-employed, permalance, temp, contract workers. Let alone the millions of us now unemployed or underemployed. Here’s a place to print up your new public identity.

How about:

“Give me a job!”  “Will work free for a shot at a new career!”   “For this, I went to law school?”

“Heading into foreclosure. Need a room-mate, stat!” “Happily self-employed”      “Brand-new MBA!”    “Fluent in four languages!”     “When can I start?”

If you were printing one up for yourself, professionally or personally, what would yours say?

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