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Growing ranks of long-term jobless face tough odds

Sat Jun 5, 2010 1:17 PM EDT
business, us, term, unemployed, long-term-unemployed
Jeannine Aversa, AP Economics Writer
< PreviousNext >
showing 1 of 3 photos
<p>Stephan Azor works on his laptop from his home in Washington, Friday, June, 4, 2010. Azor is looking for information technology work, perhaps overseeing a company's computer systems and infrastructure. He was laid off eight months ago as a system administrator for a defense contractor. "Technology changes every six months, so there are things I have to look up and learn," says Azor, who lives in Washington. (AP Photo/Pablo Martinez Monsivais)</p>

Stephan Azor works on his laptop from his home in Washington, Friday, June, 4, 2010. Azor is looking for information technology work, perhaps overseeing a company's computer systems and infrastructure. He was laid off eight months ago as a system administrator for a defense contractor. "Technology changes every six months, so there are things I have to look up and learn," says Azor, who lives in Washington. (AP Photo/Pablo Martinez Monsivais)

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WASHINGTON — If you lose your job these days, it's worth scrambling to find a new one — fast. After six months of unemployment, your chances of landing work dwindle.

The proportion of people jobless for six months or more has accelerated in the past year and now makes up 46 percent of the unemployed. That's the highest percentage on records dating to 1948. By late summer or early fall, they are expected to make up half of all jobless Americans.

Economists say those out of work for six months or more risk becoming less and less employable. Their skills can erode, their confidence falter, their contacts dry up. Their growing ranks also will keep pressure on Congress to keep extending jobless benefits, which now run for up to 99 weeks.

Overall, the economy has created a net 982,000 jobs this year. But for Jeff Martinez and the record 6.76 million others who have struck out for six months or more, their struggles are getting worse, not better.

Martinez, 40, a salesman in Washington, D.C., says he's logged more than 200 interviews in the past three years. Decked out in a dark navy suit and Burberry tie, Martinez projects drive and a zest for deal-making. And yet the most urgent deal of his career — finding a job — eludes him.

"You have days where you feel motivated and hopeful and optimistic," he says. "Then there are other days, you really lose the faith and think, `I'm never going to get another job. Ever.'"

What's causing the rising ranks of the long-term jobless to exceed the pace of other recessions?

Mainly, it's the depth and duration of the job-slashing this time. Since the recession began in December 2007 through May this year, a net 7.4 million jobs have vanished. The unemployment rate has surged nearly 5 percentage points: From 5 percent in December 2007 to 9.7 percent in May.

By contrast, in the last severe recession, the rate rose less sharply over a shorter period: From 7.2 percent in July 1981 to 10.8 percent at the end of 1982.

Lawrence Mishel, president of the Economic Policy Institute, points to the "sheer scale of the falloff in demand for workers" this time. It's left more people out of work for longer stretches. And it's intensified competition for each opening.

"It's a cruel game of musical chairs," Mishel says.

To lower the unemployment rate from the current 9.7 percent to a more normal 6 percent would require roughly a net 15 million new jobs by the end of 2016, estimates Brian Bethune, chief U.S. financial economist at IHS Global Insight.

Few think that's likely.

One factor behind the growing proportion of the long-term unemployed is the erosion of their workplace skills — or employers' perception of it. It's hard to find work in a tight job market when your skills are seen as stale.

For some occupations in particular, such as computer technicians or accountants, people jobless for many months can lose pace with technological changes or federal rules.

Among those who fear losing their edge is Stephan Azor, 30. He's looking for information technology work, perhaps overseeing a company's computer system. He was laid off eight months ago as a system administrator for a defense contractor.

"Technology changes every six months, so there are things I have to look up and learn," says Azor, who lives in Washington.

Other reasons for the growing proportion of the long-term unemployed:

— Jobs wiped out by the Great Recession that aren't coming back. In industries like home construction, manufacturing and retail, fewer workers will be needed even after the economy has fully recovered. One reason is higher productivity: Companies have managed to produce the same level of goods or services with fewer workers. Economist Marisa DiNatale of Moody's Economy.com notes that people out of work in those industries may lack the skills for other jobs that are becoming available.

— The breadth of the recession, which struck every area of the country, makes it harder for job hunters to move to another region in expectation of finding a job. Complicating the matter, the housing bust made it difficult for people to sell their homes and move elsewhere to take a job, economists say.

A study by the National Employment Law Project found that older workers — those 45 and up — make up the largest slice of the long-term unemployed. African-Americans make up 20.8 percent. And men account for six out of 10.

Martinez was living in Los Angeles and pulling in $200,000 a year from a media sales job. Three years ago, he lost it.

Burning through cash, Martinez had to move back home with his parents in Sterling, Va., outside Washington. He landed another media sales job in the area in 2008, at the height of the financial crisis. But four weeks later, he was laid off.

By his count, Martinez has sent out 2,500 resumes in the past year. He's researched would-be employers and written personalized cover letters. He hit a dry spell at the start of this year. Since then, Martinez says the job climate seems to have improved. He's interviewing again. But it's emotionally draining.

"It's tough not to have an interview, and it's just as tough to go on five or six or seven interviews and not get hired," he says.

___

AP Business Writer Christopher Leonard in St. Louis contributed to this report.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Public Discussion (16)
obama12356Deleted
take2la

The proportion of people jobless for six months or more has accelerated in the past year and now makes up 46 percent of the unemployed.

Put all 100% of the unemployed to work in the Gulf states in the handling of the BP clean-up effort. House & feed them, & bill BP for the total amount of it.

No non-disclosure agreements to sign.

No waiting for checks.

No private security keeping whatever BP doesn't want seen from being seen.

House them in quickly move-able tents for safety during the storms.

UNFORTUNATELY there's probably more than enough unemployed to cover the ENTIRE Gulf coast from Texas to the Keys.

  • 5 votes
Reply#2 - Sat Jun 5, 2010 3:08 PM EDT
Linda Luke

And you should be the first recruited

  • 1 vote
#2.1 - Sat Jun 5, 2010 8:06 PM EDT
take2la

I'd be PROUD to be on the team which shows a company like BP that there are INESCAPABLE CONSEQUENCES of their actions and the time of profits & corruption ruling common community well being is OVER.

BP hasn't ANY respect for ANYONE but themselves. Including you, Linda.

They regard the residents of the Gulf as less than 3rd class citizens to be profited from and spat upon.

    #2.2 - Sun Jun 6, 2010 11:41 AM EDT
    Real World Engineer

    shows a company like BP that there are INESCAPABLE CONSEQUENCES of their actions and the time of profits & corruption ruling common community well being is OVER.

    After the grand show for the public is over, BP will walk away with little more than a slap on the wrist for a company that sizes.

    Anything that has "bite" and it put in place with the public watching will just be countered by backroom deals between BP and gov.

    INESCAPABLE CONSEQUENCES? .......yeah sure right..... lol.

      #2.3 - Sun Jun 6, 2010 5:18 PM EDT
      take2la

      I firmly believe that BP won't survive this.

      shares DOWN 35% friday

        #2.4 - Sun Jun 6, 2010 5:44 PM EDT
        take2la

        CNN Money reporting BP value, -$71 BILLION since the Deepwater Horizon explosion. Thats the value of a company the size of McDonalds in losses in the last 50 days.

        How long can BP absorb those kinds of losses let alone all the oil.

        www.seizebp.org

          #2.5 - Mon Jun 7, 2010 12:39 PM EDT
          Reply
          Stu-4803409

          Our country expanded too much during the last 50 years, with technology we don't need or have 330 million jobs anymore, we have no way to create them short of axing NAFTA and imposing strong trade restrictions. There are a good 50 million americans that will probably never find a good stable long term job in the capitalist/corporatist economy we have today.

          • 3 votes
          Reply#3 - Sat Jun 5, 2010 4:20 PM EDT
          take2la

          On the BRIGHT side-- its almost hurricane season.

          • 1 vote
          #3.1 - Sat Jun 5, 2010 4:47 PM EDT
          take2la

          According to the latest figures there are 7 MILLION unemployed in the US right now.

          According to the atlas the are roughly 1500 miles of Gulf coastline.

          With those figures there would be one person for every 1.13 feet of coastline.

          Seems TOTALLY WORKABLE TO ME.

            #3.2 - Sun Jun 6, 2010 11:53 AM EDT
            Real World Engineer

            with technology we don't need or have 330 million jobs anymore,

            What people are seeing now as a temporary "recession" is really the typical job situation ( +/- some margin) we will have in America for decades to come.

            As you stated, our economy does not need 330 million jobs anymore.

            There are a good 50 million americans that will probably never find a good stable long term job in the capitalist/corporatist economy we have today.

            Americans are going to have to learn to change their definition of a "good" job in alot of cases if they want work at all, especially the blue collar folks.

            "Stable and long term" are no longer meaningful for lots of areas of work. People are a labor resource to be picked up, used up, and dumped ( rinse and repeat) in volatile short term cycles. Thank yous go to the corporate oligarchy in charge.

              #3.3 - Sun Jun 6, 2010 5:26 PM EDT
              Reply
              Kathleen54

              A study by the National Employment Law Project found that older workers — those 45 and up — make up the largest slice of the long-term unemployed. African-Americans make up 20.8 percent. And men account for six out of 10.

              Older workers have a harder time finding new jobs because, well, they are older. Potential employers don't wish to hire people over the age of 45 and it gets harder after age 50. It's what makes me wonder how we can possibly talk about extending the retirement age to 67 or 70. How are they supposed to work if no one will hire them?

              • 3 votes
              Reply#4 - Sat Jun 5, 2010 5:03 PM EDT
              blindsided-1194485

              As the article stated, many jobs lost during the recession will never return. The industrial age as we knew it is dead and gone. In this new "digital age" with faster technological advances occurring every day in computers and robotics many manufacturing plants will become more automated and begin to rely less on people in the workforce. The competition for the service jobs that are left will be fierce, and the pay and benefits will never match what people earned in the 20th century job market. The standard of living that our parents and grandparents enjoyed after WWII will not be possible for many of us and our children. Even a college degree is no longer a guarantee that people will be able to land a decent paying job. With a economy that is becoming more global, and companies that are growing more and more multinational and outsourcing jobs to the cheapest parts of the world they can find, This is the new reality.

              • 1 vote
              Reply#5 - Sat Jun 5, 2010 5:13 PM EDT
              Moonlighting

              Well said blindsided. Perhaps one solution would be for the military to increase the age that someone can join the military (I believe they won't take you now if you are over 30). Seems like the only jobs that are 'safe' anymore are medical or government (and even those aren't safe, as many teachers are facing layoffs because of declining taxes and budget shortfalls).

                Reply#6 - Sat Jun 5, 2010 6:48 PM EDT
                Real World Engineer

                After 30 is would be harder to train folks.

                  #6.1 - Sun Jun 6, 2010 5:28 PM EDT
                  Reply
                  Linda Luke

                  There is a problem and it needs fixed. You cannot have everyone over 45 having a problem getting a job to able to live their lives.

                  7.4 million jobs might have disappeared but that figure seems very low with an average of less than 250,000 for those 30 months each and there were month after month that we lost over 750,000 per month. If there is over 25 million people unemployed wanting a job these days it wouldn't surprise me.

                    Reply#7 - Sat Jun 5, 2010 8:45 PM EDT
                    Real World Engineer

                    For professionals looking for work.

                    After 6 months the search becomes difficult.

                    After 1 year the search becomes brutal and demoralizing.

                    After 2 years, your career is over and you might as well use your degree as toilet paper.

                      Reply#8 - Sun Jun 6, 2010 5:31 PM EDT
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