the effects of the great recession on american workers: what it means for workforce policy and...
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Facts and figures that show the personal, emotional, and financial impact of unemployment.TRANSCRIPT
The Effects of the Great Recession on American Workers:
What it Means for Workforce Policy and Practice
Carl Van Horn, Ph.D.Professor and Director
John J. Heldrich Center for Workforce Developmentand Edward J. Bloustein School of Planning and Public Policy
Presented to the International Association ofJewish Vocational Services, Toronto, Canada
May 2, 2011
www.heldrich.rutgers.edu
The Effects of the Great Recession on American Workers
2
An Unprecedented Recession
The nation’s longest recession
Highest official unemployment rate in 30 years
Over 17 million officially unemployed; millions more discouraged or underemployed
8.5 million jobs lost since December 2007
Longest average length of unemployment in 62 years
The Effects of the Great Recession on American Workers
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The Unemployment Experience
Source: Van Horn, C., and Zukin, C., “The Anguish of Unemployment,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, September 2009.
89%
55%
53%
84%
78%
60%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not a Good Chance of Returningto Previous Position
Unemployed for First Time in FiveYears
No Health Insurance
No Severance Pay
Laid Off, Less than Two WeeksNotice
Laid Off Without Warning
The Effects of the Great Recession on American Workers
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Employment Status of Workers Who Lost JobsDuring the Recession
August 2009 March 2010 November 2010
Unemployed and Looking
75% 54% 54%
Unemployed, Not Looking, Discouraged
5% 13% 13%
Employed Full time Part time, don’t want full time
19% 33% 34%(26%)(8%)
Total 99% 100% 101%
Number of Respondents
1,202 908 764
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, January 2011.
The Effects of the Great Recession on American Workers
5
Employment Status by Demographic Groups
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, January 2011.
Employed Not in Labor Force
Unemployed and Looking
for Work
Total % Total Number
Age
18 - 34 41% 12% 47% 100% 161
35 - 54 32% 12% 57% 101% 332
55+ 21% 17% 62% 100% 271
Education
High school or less 33% 17% 51% 101% 198
Some college 28% 5% 67% 100% 265
Bachelor’s degree or higher
43% 14% 42% 101% 301
Gender
Male 35% 13% 53% 101% 378
Female 31% 13% 56% 100% 386
Race/Ethnicity
White, non-Hispanic
37% 12% 51% 100% 542
Black, non-Hispanic/Other, non-Hispanic / Hispanic
29% 11% 60% 100% 150
Income
Less than $30K 27% 14% 60% 101% 245
$30K - $60K 29% 10% 61% 100% 244
More than $60K 56% 16% 28% 100% 275
The Effects of the Great Recession on American Workers
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Duration of Unemployment
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, January 2011.
47%
22% 23%
24%
22%12%
15%
32%
29%
10%16%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Wave 1 Panel, August2009
Wave 2 Panel, March2010
Wave 3 Panel,November 2010
0 - 6 Months 7 Months - 1 Year 1 - 2 Years More than 2 Years
The Effects of the Great Recession on American Workers
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Severe Financial Impacts of Unemployment
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, January 2011.
Economy has Major Impact on
Family
Poor Financial Shape
Family’s Financial Situation is Worse Compared to Two
Years Ago
Have a “Lot Less” in Personal Income
and Personal Savings
Full Sample 61% 46% 57% 58%
Employment StatusUnemployed 67% 60% 61% 65%Long-term unemployed 75% 74% 68% 76%Reemployed 52% 27% 52% 48%
Age18 - 34 51% 41% 47% 46%35 - 54 69% 51% 64% 67%55+ 67% 47% 66% 65%
EducationHigh school or less 58% 49% 57% 61%Some college 67% 53% 59% 60%Bachelor’s degree or higher
59% 31% 55% 48%
GenderMale 61% 49% 61% 57%Female 61% 42% 52% 59%
RaceWhite, non-Hispanic 56% 45% 59% 57%Black/Hispanic 69% 48% 54% 61%
The Effects of the Great Recession on American Workers
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Reduced Spending During the Recession
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, January 2011.
84%77% 76%
56% 54% 53% 52%
69%
53%
39%32%32%
67%72%
0%
25%
50%
75%
100%
Entertainment Clothing Travel/Vacations Transportation Food Health Care Housing/HomeUpkeep
Unemployed Reemployed
The Effects of the Great Recession on American Workers
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Trying to Make Ends MeetUnemployed, March 2010
70%
42% 41%
30%
20% 20%18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Used Money fromSavings to Make
Ends Meet
Went withoutMedical Care for
Myself or My Family
Sold Some of myPossessions to Make
Ends Meet
Used Food Stamps Forced to Move toa Different House or
Apartment
Moved in withFamily or Friends to
Save Money
Went to a SoupKitchen or Free
Food Pantry
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
The Effects of the Great Recession on American Workers
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Sinking Deeper into DebtUnemployed, March 2010
56%
45%
25% 24%
11%
6%3%
0%
10%
20%
30%
40%
50%
60%
Borrowed Moneyfrom Family or
Friends
Increased CreditCard Debt
Missed a CreditCard Payment
Missed a Mortgageor Rent Payment
Borrowed MoneyAgainst Your House
or from a Bank
Declared PersonalBankruptcy
Lost my Home toForeclosure
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
The Effects of the Great Recession on American Workers
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The Emotional Costs of UnemploymentAugust 2009 and March 2010
7975
6967
54 54
48 47
42
4953
47 46
36 3531
23
17
0
10
20
30
40
50
60
70
80
90
Stressed Eager NewStart
Depressed Anxious Helpless Angry Hopeless Hopeful Motivated
August
March
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
The Effects of the Great Recession on American Workers
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Personal Impacts of Unemployment
61%
41%
58%
52%
62%
10%
55%
60%
44%
51% 52%
68%
13%
43%
63%
46%
52%55%
71%
14%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Change in SleepingPatterns/Loss of Sleep
Loss of Contact withClose Friends
Strain in Family Relations Avoid Social Situationswith Friends andAcquaintances
Uneasiness orRestlessness
Substance Dependency Quick to Anger
All Unemployed in August 2009 All Unemployed in March 2010 Unemployed in August and March
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
The Effects of the Great Recession on American Workers
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Policy Changes
Extend and reform Unemployment Insurance; ensure coordination with reemployment services
Enhance advance warning laws; more robust rapid response
Incent lifelong learning opportunities with emphasis on attainment of certificates and degrees
Bolster resources for the Workforce Development System
The Effects of the Great Recession on American Workers
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Practice Reforms
Link workforce development with economic development and employer needs
Build stronger connections with other organizations that serve the unemployed
Expand on-the-job training and apprentice programs
Enhance labor market intelligence to help job seekers
Set and enforce standards for program quality
The Effects of the Great Recession on American Workers
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Contact Information
Carl Van Horn
732.932.4100 x6305
www.heldrich.rutgers.edu