Tuesday, October 14, 2014

The New Unemployed: Older, Educated and Broke

Reports CNBC
The conventional wisdom that more education bears fruit in the labor market gets turned on its head when it comes to unemployment. For people with masters and even doctoral degrees, long-term unemployment is especially insidious. At best, these formerly high-earning professionals face the prospect of a years-long climb back to their former level of income and stature, while they delay retirement to rebuild their decimated nest eggs.

Others won't be that lucky. Debt, foreclosure and evaporated savings push them out of the middle class, and some just keep falling
Nearly half of the long-term unemployed in a Rutgers survey published last month estimate it will take up to a decade to rebuild their finances. More than 20 percent say it will take more than a decade, or that they'll never recover. The highly educated are "actually in worse shape because they had farther to fall and had greater financial liability, says Carl Van Horn, distinguished professor of Public Policy and director of the John J. Heldrich Center for Workforce Development at Rutgers University.

In a survey of 800 jobless professionals conducted by the Institute for Career Transitions, about 10 percent of the short-term unemployed had doctoral, law or MBA degrees. Among the pool of long-term unemployed, more than 18 percent held such degrees.

1 comment:

  1. Is The Money Printing Facade Cracking?

    Yesterday I sent an email around to some colleagues in which I suggested that something nasty is going on behind the scenes in the financial system that is not yet apparent. The bond market was closed yesterday but Treasury futures opened in th early evening and the 10-yr traded down to 2.25%. This time last year the yield was 2.75%. Despite the jump in the SPX today, which always happens on POMO Tuesday, the 10-yr is now down to 2.23%.

    The “improving economy/housing market” does not hold up when the yield on the 10yr is collapsing like this. This is not a short-squeeze.

    Something has the market incredibly spooked and I find it interesting that the U.S. Treasury Secretary and the UK’s equivalent will be running a big bank fail simulation test next week. The movement in 10-yr Treasury yields AND the blatant smashing of the gold price since mid-July is exactly what occurred in 2008 before Lehman collapsed.

    A friend of mine thinks it could be Citicorp who’s in trouble right now. Interestingly, Jack Lew is a former Citicorp crook who was inserted in the Treasury Secretary seat. Recall that Henry Paulson – former Goldman CEO – was put in that seat ahead of Goldman Sachs being bailed out in 2008. The parallels with 2008 going on right now are a bit spooky. But let the population worry about an Islamic “boogie man” and a few cases of Ebola so they don’t see what’s really developing.

    The hidden problem developing could well be this: Greek bond and stock prices plunge.