Subscribe to our newsletter!

Posts Tagged ‘Unemployment’

Why handouts aren’t good in the long run…

Friday, January 29th, 2010

A new blog post by one of my favorite Authors/entrepreneurs, Dan Miller, caught my eye, and I thought it would be worth sharing.  The post, titled, When Helping Hurts focuses on some recent developments regarding our national unemployment program.

The government is looking into extending benefits in the unemployment program for the 5th (that’s right, I said 5th) time since the recession started, just a couple of years ago!  Normally, the benefits are doled out to the unemployed over 26 weeks (aka 6 months), with the option to get a 13 week extension.  Basically, this means that you can draw unemployment for 9 months before you have to go back to work, and a lot of people do just that!  They collect full benefits before even really trying to get a job!  Why, you ask?  Well, I assume for some it’s because they think it’s “free money”, but, as we all know, that’s never the case for anything.  Somebody always pays, be it the company, the taxpayers, the government (which takes its money from the taxpayers) or the consumer (who is almost always ALSO a taxpayer).  Under the new proposed benefits, the pay outs can run as long as 99 weeks…almost 2 YEARS!

The funny thing is that some studies sited in the post indicate that people are most likely to find a job when the unemployment runs out, no matter if that length of time is 2, 26 or 99 weeks.    People seem to think that because they are drawing unemployment, they economy must really be in the toilet for everyone, and so they don’t try.  However, when there is no more unemployment, they “magically” find work.  Amazing!

There are many examples of these programs being run the wrong way and abused by some of the participants.  I’m not going to get into that, because I have a feeling many of you wouldn’t want to read a post that long.  If I’m wrong, say so in the comment section, and I’d be happy to oblige!

Dan Miller draws an interesting observation, drawing a parallel between the way bears hunt and the way we as humans acquire a job.  Bears hunt more efficiently when they aren’t given food from humans…you know, when they have to hunt.  We are the same way with money and jobs.  When there isn’t somebody giving them to us, we get creative and figure out a way to do it.  Be that start our own company, go to work for someone else or sell some stuff, we will make it work.  Can’t find work in your area?  Perhaps you should move.  Think outside the box people!

Tags: , , , ,
Posted in Friday's Financial News! | Comments Off

Why the mall contradicts the experts…

Wednesday, January 13th, 2010

I drive by our local mall often, and for the past several months, I’ve been watching it for signs of the recession, unemployment, and how bad the economy is suffering.  Now, as much as I believe that there are places all throughout the country that are truly suffering, with debt, falling home prices and unemployment, I have to say, it’s not happening with the same fury everywhere, the way the media would have you think.

I hate to see people suffer, and those people that have lost their jobs are in my prayers.  However, the falling home prices are only an immediate concern if you are trying to sell your house and/or have lost your job.  If you have a stable income and are contented in your home, staying there for a few years (decade, maybe?) isn’t a big deal, so neither is the drop in value.  Debt, is, as always, a major concern for us.  If you are employed, you should be making a budget, sticking to it, funding your emergency fund and getting out of debt.  If you are unemployed, then you are in an income crisis, and that should be your main concern…along with food, shelter (that doesn’t mean a “McMansion”) and basic utilities (i.e. lights, water and heat).  You can’t focus on paying people back what you owe until you get stability back in your life, so put them on hold, even if it takes a few months. 

I would like to make a point for our readers though: with roughly 10% unemployment, that means that 10 people out of 100 are out of work, which is the same as saying 90 people of 100 are employed…it’s terrible for those 10 people, but overall, it’s not a catastrophe.  And those 90 out of 100?  They are shopping!  Maybe less often than before, and they might be spending less than before, but they are shopping…at least, that’s the way it looks EVERY time I drive past/go to the mall.  The place is packed!  As usual, I can’t find parking there, and the Christmas season was just as bad as usual.  Now, like I said, I know this isn’t the case everywhere, but the media’s version that everyone everywhere is suffering terribly, in houses they can’t afford, without jobs and piling up debt.  This isn’t true either.  The truth, as usual, is probably somewhere in the middle.  Some are suffering, some aren’t.  If you are suffering, I wish you luck and speed in your job searches and in getting out of debt, and if your job and home life are stable and “secure”, work hard to keep it that way, and help those who need it, either with prayer, food donations or job contacts (etc.).

Tags: , , , , , ,
Posted in Wild Card Wednesday | 1 Comment »

More about the recession.

Friday, November 13th, 2009

Today’s article is Earth to economists: Recession isn’t over, by Carla Fried.  It’s an interesting look at the divide between the people who believe the recession is over, and those that think we’re still in it for a while.

Conflicting information is what the author cites as a problem.  An advanced estimate of the annualized 3rd quarter GDP was up 3.5%, but consumer spending fell 0.5% in September.  The GDP numbers are a result of government spending, and, as you would expect, unemployment, and the fear of unemployment are the result of the slump in consumer spending.  The fact is, a recent poll showed 58% of people (October)  still believe the recession is hanging on, up from 52% (September).  And while public opinion certainly isn’t the only factor in the economy, it DOES factor into the economy.  This is obvious…if people think the economy is down, it affects the way the go about their daily lives, and what they do and don’t spend.

You see, there are a lot of opinions out there on where this country and it’s citizens are headed thanks to this economic mess.  Some are saying that we are fine and that everything will go back to “normal” soon, and some conspiracy theorists seem to think we’re going to become third world nation.  The truth, thankfully, is probably somewhere in the middle.   If you read the original article, you should check out some of the absolutely ignorant and insane comments posted by readers.  I’m no economist, but I’m also not going to listen to anyone whose claims sound outlandish at best and pray on the fear and ignorance of other people.  My guess is that the economic turmoil will continue for a while…how long? I have no idea.  The economy needs to correct itself from the inflated values that  we placed on our assets (namely, our houses), and until it corrects itself, I don’t think things can get better.  However, I DO think things will get better.  Banks will start lending again, companies will start hiring again and people will start spending again.  Do I think it will go back to the way things were? No, and I hope it doesn’t.  We shouldn’t expect to buy a home and 3 years later move with 50% equity because of the jump in value…that’s not right.  Slow and steady wins the race people.  When things start to improve, you will have to SAVE your money and PAY DOWN your mortgage for there to be equity in it…and that’s the way it SHOULD be!

Tags: , , , , ,
Posted in Friday's Financial News! | Comments Off

Signs point to inflation, but is it happening?

Friday, November 6th, 2009

Today’s article is Where did inflation go? by: Joe Light.  The story is basically that the government now has $2.2 TRILLION dollars in assets, and, as most of us already know, they have given a bunch of money to the banks.  What that means is that the banks have money to lend now, which usually leads to more money in the economy and that drives prices up, aka inflation.  Interestingly, though, that isn’t what’s happening.

Prices are staying the same, and, in some cases, the prices are even going down.  So, what’s the deal?  Unemployment, for one.  People don’t have jobs, and so they can’t spend as much money, so the inventory in stores doesn’t move, and the prices don’t go up, i.e., no inflation.  Also, the lenders’ balance sheets (how many assets and liabilities they have, and their net worth) are still in a place where they are fearful of a too low cash flow, so they aren’t lending as much.  They are trying to keep as much money for themselves as possible, and so that means companies and individuals aren’t getting loans. 

So, what happens in the near future could help or hurt the economy.  When the unemployment rate goes down (hopefully), the banks might lend more.  This will prompt the Fed to try and take some of that money, and depending on it’s timing, we could end up with higher prices, another recession or inflation.  Gee, doesn’t that all sound fun?

Tags: , ,
Posted in Friday's Financial News! | Comments Off

Being single also means being more likely to be without a job!

Friday, October 9th, 2009

Today’s article, No spouse, no job: Unemployment hits singles hard, by George Mannes is an interesting look at some statistics that have come out recently regarding unemployment. 

The numbers for unemployment in September show that it rose to 9.8%, and that it might hit 10% in the near future.  But as bad as the overall unemployment rate is, the breakdown of single versus married people is interesting…it’s almost double!  In August, the rate was 13.5% unemployment for singles and 6.3% unemployment for married people!  The article points out that a likely reason is that married men are motivated to take a lower paying job, to be able to support their families, and that single people are typically younger and have less education and experience than their married counterparts (this, of course, is just supposition).  There is also a difference in those with a high school education versus a Bachelor’s degree or higher.  Only 4.9% with a Bachelor’s degree are unemployed, versus 10.8% with only a high school education (a good argument for staying in school and going to college).

There is also disparity amongst race, gender, and age.  And, while these statistics are interesting to me, I have to think that there are ALWAYS discrepancies amongst employment based on race, gender and age, since the people in the work force are constantly changing.  I’m not taking away from the fact that these people are suffering.  There are a lot of people out there suffering, and I wish them a job…pronto.

Here is the breakdown:

  • African Americans – 15.4%
  • Hispanics – 12.7%
  • Caucasions  9.0%
  • Asians – 7.4%
  • Adult Women – 7.8%
  • Adult Men – 10.3%
  • Teenagers – 25.9%

Overall, I’m most intrigued by the stats on single people.  If single people are more likely to be jobless due to their unwillingness to take lower pay, I say that it is their choice!   As long as they have an emergency fund in place to carry them through this tough spot and/or are working a part time job til they find the “perfect job”, so be it!  And for those of you who are married, taking lower paying jobs, don’t forget your worth!  No matter what your situation, having an emergency fund and being prepared for a job loss will help you weather any storm!

Tags: , , , ,
Posted in Friday's Financial News! | Comments Off

Unemployment Rates are rising…what you already know and must have forgotten…

Thursday, February 26th, 2009

Everybody seems to be talking about the unemployment rate reaching a 26 year high recently. Well, it’s true, it did. But are there still jobs to be had? Yes. Are there still ways to make money? Yes. Here is my break down of the the job situation and some other tidbits of information and advice (critique) to get you back on track. (please see referenced websites at the end)

I know that the news regarding jobs and the economy is frightening, but you have to compartmentalize that as “what’s going on in the world” and focus on “what’s going on in your house and community”. It could be that some towns and cities across the U.S. are hitting rock bottom, but your hometown is still doing ok. So, before you do anything, assess your own personal situation. If you have your job, and your company doesn’t seem to be struggling, then stay where you are. Now, that doesn’t mean you shouldn’t build up an emergency fund in case something does happen, it just means that your job looks relatively stable. Now, if you live in a small town with only a couple of big companies that provide employment for most of the townspeople, you should definitely be saving some money and keeping your eyes open for signs that the company is struggling. For example, have they cut back on freebies or privileges? Are there no free bagels in the morning? No more overtime? No bonuses? Have they closed other locations? If you see any actions like this, prepare yourself for the possibility of a layoff.

Okay, so now let’s assume that you’ve lost your job. You need money. You need to provide for your family. Well, in spite of what the news is reporting, there are jobs to be had in the U.S. Now, not all of these jobs are glamorous, and the truth is that you might be overqualified for them, but, I have to say, so what? You are looking for something to provide for your family, and if in a couple of weeks you don’t find your dream job, well then, I suggest you deliver pizzas til you find what you want. Everyone knows that companies are eliminating jobs. There is NO SHAME in providing for your family. Wal-Mart offers health insurance to its employees, so get a job there and have health coverage. Starbucks offers health insurance to part time employees!!!

Here is another point that might surprise you: it might be financially better for your family if one of the parents stayed home. Take a look at your finances. If one parent makes significantly more than the other, maybe the lesser earning parent should stay home. If the lesser earner does not make enough to cover the cost of daycare, their gas or bus pass for transportation to and from work and their daily lunch/coffee, then it is a financially sound decision (not to mention good for the well being of the child) for that parent (no matter if it is the dad or the mom) to stay home and care for the child. So, if you lost your job, but financially weren’t making enough to cover the job, then stay home and be with your child!

Now, for those who say there are no jobs out there, I say you just have to look. Granted, some small towns have only one factory, which provides most of the jobs for its residents. This is hard for me to say, because I came from one of those towns, but it is a bad model from which to set up a town. As a resident, your whole existence depends on the stability of the company. I wouldn’t want that stress. So my advice on this, though hard, is to MOVE AWAY. For the rest of you living in towns/cities with plenty of businesses, I say, looking for a job is a full time job. You only get as much out of it as you put in it. If you blow off looking because interviews are uncomfortable, well then, don’t expect to get a job. And please don’t think that looking for jobs on the internet only will help you find something, because usually it doesn’t (yes, there are exceptions). Here are some places that are usually hiring, no matter what the economy is doing:

Tech industry – you might have a masters degree, but level 1 tech support lackey beats grill master at a fast food joint.

Wal-Mart/Target/Kroger/Costco – again, not glamorous, but we’re talking about basic employment with benefits

Health Care Industry – all that money we pay for health services doesn’t just go to doctors, some of it goes to the nurses and administrative support team. (Hint: these positions are usually paid way more than what the job responsibilities imply they should be)

Government/State jobs – come on, it’s the Government, they’re always hiring. Pay is decent, benefits are good.

Military – should be under government, but I separated it because they just recently came out saying they were adding 180,000 jobs. These jobs offer free housing, food costs, health benefits and an average starting salary of $35,000.

Don’t tell me there’s nothing out there. Maybe you just aren’t looking in the right place, or thinking the right way. I wish all of you luck in your search for a job. If you have any questions and think I might be able to help, just add a comment, and I will try to the best of my ability!

Happy Hunting!

http://money.cnn.com/2009/02/26/news/economy/jobless_claims/index.htm?postversion=2009022609

http://news.google.com/news?ned=us&hl=en&q=walmart+hiring

http://news.cnet.com/8301-17939_109-10073394-2.html

http://www.msnbc.msn.com/id/29377376/

Tags: , ,
Posted in Wild Card Wednesday | Comments Off