http://www.time.com/time/business/article/0,8599,1861115,00.html


1. Unemployment: Reasons Why It Is Harder This Time Around

To begin with, you might want to know that unemployment has its roots too. Taking a quick peek back at the Great Depression, this sad part of our history reveals that 25% of the working class people found themselves jobless. Recent report showed that unemployment rate was at 7.8% in the 80's and had a staggering increase of 11% in the early 90's. As we all know America survived without so much as a scratch, as if those two major recessions did not really happen.

Now, even if the jobless total will climb from 6.5% last October to 8% this fall, as what the experts have predicted, it was not as bad as we may have feared it to be, if we are to consider the shocking numbers those two recessions provided.

But why do economists and labor market analysts were not at all in ease with these facts? What brings them to conclude that it would be harder for each American worker to survive this crisis than he had before? If we are to reflect on their forecasts, the odds are not great, for about 2.3 millions of people will be losing their jobs next year.

It lies beneath the surface

Thomas Lam, an economist of United Overseas Bank based in Singapore, believes that this is more than a simple change in the unemployment cycle. The fact that the out of work people will find it harder to get jobs nowadays begins on what Lam, who also keeps track on the progress of the country’s economy, confirms as a United States’ structural problem.

Lam had found an outcome so alarming just by looking through what he calls as an employment flow that follows the movement of the employment cycle. The said employment flow influences the series between those people who are receiving regular salary and also those who are not that fortunate. According to Lam’s acquired information, this is definitely one of the worst timing any job seeker will encounter, even if one shall take into account those tragic recessions in American history. What makes it scarier is the fact that we have not reached 8% yet.

The lasting risks that those economists before often regarded as nonsensical to the extent of being unworthy of either time and attention, are now slowly creeping into the economy’s surface and twisting themselves with the problems of joblessness. Some of these things were planted deeply, such as a fancy term called human capital’s misallocation or career imbalance.

No matter how many reasons we have provided and defences we have invented, just to justify why we have taken things for granted, we can never turn our back to a thing is absolutely real; the United State’s employment market had reached its snapping point where no one is totally secured.

Light at the end of the tunnel

Of course this is not supposed to be all about unfortunate events, we have been in situations like this before, and there is a good possibility that we might overcome this crisis. Job transitions, painful as they may seem, might become a little easier for those college graduates, who are now almost 30% of the working population. Dean Baker, Center for Economic and Policy Research’s co-editor expected an increase in manufacturing which might save the economy from its present state. All it takes is a little faith after all. GP




http://www.time.com/time/business/article/0,8599,1856392,00.html?referer=sphere_related_content&iid=sphere-inline-bottom



2. Layoffs: The Unemployment Blade Cuts Deeper

America was gripped with fear about massive job loss when American Express announced its plan to layoff 10% of its workers, this was followed by another disconcerting news from Motorola about its plan to do the same. The well-established finance company decided to dismiss 7,000 of its staff in an attempt to accumulate $1.8 billion by this coming year as a balance strategy for their financial instability caused by the increasing number of non-paying consumers.

Meanwhile, another multinational company went after the “trend”. Motorola Inc., who took 2,600 employees away from their jobs last April, was planning one more massive layoff. Losing nearly $400 million dollars, the corporation stated that they would have to cut 3,000 people out their workforce again.

Aren’t we there yet?

For nine consecutive months, the country has experienced unsteadiness of career opportunities which also made the jobless total rose above 6%. Everybody is in the edge of their seats, anxious to know when this crisis will going to stop.

Labor market analysts and experts were not at all hopeful. Robert Reich, a Public Policy professor at the University of California, confirmed that we are still in for worst scenarios. In line with this, the former U.S. Secretary of Labor added that as the public becomes hesitant in spending their money, this will automatically results in business failure and of course, payroll reductions. The nation might expect more layoffs until 2009. Reich also believes that the previous joblessness forecast of 8% is not probable, as this prediction leaves out applicants and part-timers looking for a full-time work. In fact, he believes it could leapt up to a surprising 12%!

Susan Eaton of Lee Hecht Harrison, an outplacement firm, says that the people who belonged into this additional set are worried about the outcome, particularly in times like this, when the future becomes something you fear. Being the company's senior vice president, she always make it a point to remind her clients about the importance of being a positive-thinker and having an open mind. One must believe that in the midst of this present crisis, with just a little effort, there is a good possibility that things will get better.

Reinvention is one of the keys

Some people emerge safe and sound while some appear roughly. Coming out equipped with fresh, new skills might place you in somewhat better situation. You must accept the fact that you might not have the things you always thought you would have, like working in the same company, having the same salary or doing the same job. This crisis left us limited options to choose from. So, one must take advantage of every possible opportunities that comes his way.

Roy Krause, CEO of Spherion, a firm that handles recruitment and staffing, added his own observation of the matter. He stated that based on his firm's monthly survey of applicants that were seeking career opportunities, hopeful workers these days are not at all positive in the strength of the economy but were confident of their own capacity in finding new employment.

It seems that keeping your faith would take you anywhere. It is of man’s nature to survive. Perhaps, by looking to the brighter side, everything that does not sound good today will makes sense in the end. What matters most is to at least try. GP




http://www.guardian.co.uk/business/2008/oct/16/unemploymentdata-economics


3. A Very Lonely Christmas: Approximately 2 Million People will Be Jobless

Economists have forecasted that this downturn is the worst scenario in terms of unemployment since the early 1990s recession, dragging along the hopes of millions of currently employed people for a fulfilled and rich Christmas.

Based on the report of the Office for National Statistics, made after seeing the newest warning to the economy founded by the 14-month credit crisis, the unemployment total on the extensive Labour Force Survey rose by 164,000 just three months to August. However, the most horrible statistic to be considered since June 1991 was the total created by the previous three months, where unemployment jumped just under 1.8 million. From 5.75% to 5.2%, this has been the worst jobless rate for nearly a decade.

The “breeze” of unemployment

According to David Blanchflower, an expert on labour market, above 2 million people will be leaving their jobs by Christmas. This analysis regarding unemployment now looked conventional, he added.

Also a part of the monetary policy committee of the Bank of England, the 56,000 increase in the total of jobless, out-of-school youth was specifically worrisome for Blanchflower. The people who claimed jobless benefits leapt from last month’s 31,800 to 939,000, the eighth time it had increased consecutively.

Those people who will be affected by this unemployment crisis are from trade, hotel, and catering units, together with monetary and manufacturing services. Furthermore, London is measured to be the most influenced area in United Kingdom, due to the fact that the rate of joblessness goes up rapidly more than anyplace else.

In line with this, the Institute for Employment Studies’ director, Nigel Meager stated that every part of UK will be involved and no one will be spared. Although much attention were given to the city’s high-end jobs, those lower skilled workers, people who do not have enough financial stability to keep them safe in times like this as well as people who most likely find it hard to look for another, apparently better job, they will be in the most difficult position ever.


A glimpse of hope

In his speech made during an EU Summit, Gordon Brown assured the public that they will do anything just to make certain that people will retain their current jobs while those unfortunate ones shall be able to learn new skills for a new career. He said that they will guarantee that everybody will have a chance for opportunities.

He also gave examples such as reducing bills from gas and electricity as ways to create chances for progress and advancement. Economists, on the other hand, do not agree with this statement by saying that the government will not be able to keep up with their plans of providing more jobs while the economy continues to slow.

Capital Economics’ Vicky Redwood says that by the end of the year 2010, UK’s estimated unemployment rate will leapt within 1.5 million to 3 million while Jenny Willot, the work and pensions spokesperson of the Liberal Democrats, suggested that proper attention should be given to unemployment prior to the bank rescue package agreement.

Unemployment nowadays is indeed one of the matters to be taken seriously by everyone, especially this coming season. As the numbers of available jobs sink and more companies reducing their workforce, the chance of having an abundant and stress-free Christmas is suddenly out of reach. GP




http://www.epi.org/content.cfm/issueguides_unemployment_index


4. What You Should Know About Unemployment Insurance

Established in 1935, the unemployment insurance or UI is a combined project by the federal as well as the state to protect and support the workers who found themselves jobless against their will. The financial source of this project came from the taxes paid by the employers. Further than extensive procedures and minimum standards, the states have the power over the significant factors of their UI programs which cover:

• Eligibility requirements – an unemployed worker must file their initial claim and be qualified under the state-determined criteria to be able to find out if they become certified for UI benefits.
• UI’s duration – the maximum probable period that applies to most UI programs is 26 weeks, however due to some reasons, the duration can be a little shorter, like when the jobless already found a new employment or by some violation like refusing an “appropriate” career
• Financing – each of the states has their own policies when it comes to qualifications and willingness to provide benefits, which makes sufficient financing critical
• State variations – the advantages an unemployed worker can get and the taxes the employer pays were considerably different from one state to another because each state has their own ways on how they implement their insurance for unemployment programs
• Recommendations – because UI programs for each state are diverted, so does their degree of reform desired. Thus, some extensive guidelines are suggested like simplifying the calculations of eligibility policy and benefit and presenting more convenient advantages for the unemployed and his family to keep them away from poverty

There had been numerous changes within the employment market since this program was established. Sadly as it may sound, the program has not been able to keep up. The increase of part-time and contractual workers as well as the rise of women’s part in the labor force were among these changes.

The incapacity to keep up with this transition presents more complications for this particular group of employees, which is why reforms, which also vary from one state to another, are necessary.

Factors the State Should Consider in Providing Assistance

• the employee’s latest wages
• wide qualifications for part-time job seekers
• the number of hours worked, instead of salaries, to give way to low-wage earners
• generous benefits for the employee and his family to save them from poverty

The Truth behind Those People Who “Actually” Receives UI

This program is not really what it seems these days. Out of the entire unemployed population, only 40% receives benefits. And it looks as if men were being specially favored than women, as the rate states 41% and 39%, respectively. Also, the issue of racism can be taken into account since Whites were more privileged than Hispanics or blacks. When considering the recipiency rates of each state, one can be able to notice that certain variation also applies.

Furthermore, some jobless employees find the application for benefits discouraging and intimidating in some sense, thus considering themselves unqualified beforehand. The idea of not working enough and benefits being to low are among the reasons for this kind of behavior. GP




http://www.mercurynews.com/business/ci_11040907


5. Unemployment Benefits Have Been Extended

Nobody can tell when this crisis is going to stop. As the year-end holidays draw nearer, the President of the United States of America guaranteed continuous benefits, by means of checks, to those unemployed workers that were affected by massive lay-offs lately.

Just before President George W. Bush leaves the White House for a flight to Peru, where he is to attend an Asia-Pacific forum, he signed the rushed bill stating the extension of benefits for the out of work people.

Previously, Bush had been a little skeptical about lengthening the benefit distribution, until new statistics demonstrated unemployed workers’ claims leaping to an overwhelming 16-year high. This prompted his support for the legislation.

For those jobless people whose reimbursements are near expiration or running out, this bill, which was passed in October, provides three more months of additional benefits in attempt to give assistance to those millions of unemployed people who are still seeking new careers in this time of downturn.

The Dow Jones Industrials Tragic Story

A living proof of how complicated things are getting is what happened to Dow Jones Industrials last Thursday, whose stability plunged more than 400 points for two consecutive days. After five years of operation, they have considered it as the lowest level so far. The inability of the government and the Congress to offer aid and assistance to the sinking industry dismayed investors in some ways.

Democratic leaders have planned to cut out $25 billion from the monetary rescue plan, which amounts to $700, just to save the auto industry until next spring, but the effort has been unrecognized as the government, as well as the Senate Republicans, opposed.

If the country’s three major automakers can present evidence that states how federal assistance shall can them provide valuable ways to future financial sustainability, the Democrats are open to the idea of returning into session on the 8th of December. Meanwhile, other national actions will be given proper attention by January.

While the Bush administration struggles in keeping the effect of unemployment to a minimum, Barack Obama ensured the public that economic recovery shall be given the utmost importance on his new government.

The Highest Jobless Rate since Early 1990s Recession

The plummeting career market is expected to get poorer in 2009. This was based on the latest statistics provided by the Labor Department due to the fact that the benefit claims of those who are out of work climbed to 542,000 last week. The population of those job seekers is now over 10 million while an outrageous 6.5 percent determines the civilian jobless rate.

Charles Rangel, committee chairman of House Ways and Means, affirmed that lengthening this basic aid to support those people who are unemployed can bring optimistic outcomes, as this may lead to maintaining other jobs and keeping consumer trust.

Those people who have zeroed their jobless settlements will be given seven extra weeks of benefit payments. On the other hand, those unemployed people settling in states where the rate of unemployment is over 6% will be qualified to get thirteen extra weeks on top of 26 weeks of ordinary assistance benefits.

For the past 50 years, the government, particularly the Congress, had extended the unemployment benefits seven times during each economic downturn.

Having seen the impact on career opportunities, the press secretary of the White House, Dana Perino advised the Congress to act rapidly on the benefits bill last Thursday. It was a contradicting move, as the White House had been previously opposing this kind of idea.