Posts tagged with: unemployment

long-term-unemploymentThe longer that Americans are unemployed, the more likely they are to report signs of poor psychological well-being. A recent Gallup survey found that about one in five Americans who have been unemployed for a year or more say they currently have or are being treated for depression.

Gallup finds that unemployed Americans are more than twice as likely to say they currently have or are being treated for depression than both those with full-time jobs and those who have been unemployed for five weeks or less. According to the U.S. Department of Labor, there are currently 3.4 million people who have been unemployed for 27 weeks or more. These individuals accounted for 34.6 percent of all the unemployed.

A 2011 study of the long-term unemployed published by the Heldrich Center for Workforce Development at Rutgers University also found that half of participants experienced shame and embarrassment that led them to isolate themselves from friends and associates. Among the long-term unemployed, 31.1 percent reported spending two hours or less with family or friends the previous day, versus 21.5 percent among short-term unemployed adults.

Long-term unemployment is not just a mental health crisis; it’s also a spiritual crisis. And the church is the only institution in American that can adequately respond. “Fortunately, the church is in a unique place to explain Christ’s restoration of work,” says Michael Jahr, “the meaning of suffering, and the hope and peace that result from putting our trust in him.”
(more…)

unemployedNote: This is the latest entry in the Acton blog series, “What Christians Should Know About Economics.” For other entries in the series see this post.

 The Term: Unemployment

What it Means: If you consult a dictionary, you’ll find a number of commonsensical definitions for unemployment: the state of being without a job; being without a paid job but available to work, etc. But like many other economic terms, the dictionary definition can vary significantly from how the term is often used. For example, since your teenage daughter, your neighbor’s stay-at-home spouse, or your retired grandfather are without a job, are they considered “unemployed”? In each case the answer is the same: It depends.

According to the federal government, to be unemployed a person must (a) be jobless, (b) looking for a job, and (c) available for work.

People are considered employed if they have a job (whether temporary, part-time, etc.). People who are neither employed nor unemployed are considered to be not in the labor force.

In America, the labor force consists of all persons 16 years old and over who are not serving on active duty in the military and are not confined to institutions such as nursing homes and prisons and either have a job or are looking for work. The labor force is made up of both the employed and the unemployed.

So unemployment refers to anyone who doesn’t have a job, wants one and is available to work, and is actively looking for work. That last part is particularly important because “discouraged workers” are not counted as unemployed. (See below for more on discouraged workers.)
(more…)

Time magazine, 1964: Lyndon B. Johnson as Man of the Year

Time magazine, 1964: Lyndon B. Johnson as Man of the Year

As noted here on the Acton PowerBlog earlier this week, 2014 marks the 50th anniversary of Lyndon B. Johnson’s declaration of war on poverty. Economist Nicholas Eberstadt, in an interview with the American Enterprise Institute, discusses what he calls the “brave new welfare state” we now have due to over-grown public assistance and unintended consequences of government programs.

Asked if we need to spend more money on anti-poverty initiatives, Eberstadt answers:

Let me suggest this is not the right way of framing the question. Quite the contrary: if we presume that government entitlement transfers are the answer to the poverty problem, we are pretty much doomed to failure before we even start.

For a healthy national community of prosperous and independent citizens, we need a nation with strong families, solid education, a serious work ethic, and a good jobs market. Anti-poverty programs can only substitute for these fundamentals—and unfortunately such programs are necessarily rather limited and imperfect substitutes. Of course there is a role for public resources in addressing public need—but such government resources can be targeted more efficiently and intelligently than we are doing today.

(more…)

Seattle-mystWhen I was growing up I had a buddy—let’s call him “Bob”—who was constantly asking, “What happens if we do . . . ?” Bob’s curiosity, however, only led him to wonder about foolish actions. He never pondered, for example, what would happen if we all volunteered at the senior citizens center. Instead, his thinking ran more along the lines of what would happen if we jumped off the senior citizens center.

The reaction of me and the rest of my friends was always, “Let’s find out!” But we were more prudent than Bob (or maybe just more cowardly) so we’d encourage him to try whatever reckless idea he had in mind so we could learn from his experience. We learned, for instance, that if jump off the 3-story senior citizens center, a stack of cardboard boxes will not be enough to sufficiently break your fall.

Bob’s shenanigans would daily provide for us what social scientists would call a “natural experiment.” A natural experiment is a study of the effect of an independent variable, which has not been planned or manipulated by the researchers, on a dependent variable. (The word ‘natural’ in the term natural experiment therefore refers to an event that is not planned by the researchers.)

The city of Seattle is about to pull a Bob, by foolishly raising the minimum wage to $15 per hour. The effect on the citizens of Seattle will be almost entirely harmful. But it will provide a natural experiment on the effect of raising the minimum wage laws that the rest of American can learn from. Anyone who isn’t already convinced that increasing the minimum wage has a detrimental impact on employment and harm minority workers will, in a few years, have solid proof. We will all be able to look to Seattle to see the difference between good, albeit naive, intentions and sound economic policy.

Here are some of the effects I predict the policy will have in the next three years:
(more…)

keep-calm-and-expect-the-unexpected-18Today at Bloomberg we find this unexpected news about unemployment:

Applications for U.S. unemployment benefits unexpectedly climbed to a nine-week high, underscoring the difficulty adjusting the data for seasonal variations such as the Easter holiday and spring recess at schools.

Jobless claims rose by 14,000 to 344,000 in the period ended April 26, the highest level since Feb. 22, Labor Department data showed today in Washington. The median forecast in a Bloomberg survey of economists called for 320,000.

There are two things the media never expects: (1) The Spanish Inquisition and (2) increases in jobless claims. Over the past five years, in 30 of the past 60 months,  the media has considered it “unexpected” when jobless claims increase:

(more…)

“When People Give Up Looking for Work, What Do They Do?” A Wall Street Journal story looks at the “millions of working-age men” sidelined by the economic slump, and warns that “the longer they’re out of work, the more their skills deteriorate and the harder it is to land the next job.”

“Those who can’t find work often turn to safety net programs, such as food stamps, unemployment benefits and disability — programs that have ballooned since the recession began,” the article continues. “Once people start receiving disability benefits, they rarely leave the program.”

The take home: take any ethical job. Consider self-employing yourself, offering to do work others find unpleasant. Some potential employers in your preferred career may look down on you for having done grubby work, but others will admire your willingness to roll up your sleeves and get your hands dirty while you’re waiting for a job in your chosen field.

The Bible condemns willful idleness and enjoins us to labor so that we can have the means to help those truly in need. If after pursuing any ethical job available, you’re still underemployed, cut your living expenses to the bone, minimize your use of the government dole, and use your idle week days to volunteer long hours doing something beneficial for society, including time on your knees in intercessory prayer.

The Christian community talks so much about pursuing your vocational passion and calling that we often neglect that gritty reality that sometimes God uses circumstances to call us into work that doesn’t use all of our talents, but instead exercises our fortitude, selflessness, and humility.

I remember when I was 22. (more…)

Subway at True Bethel Baptist Church

I have previously expressed my appreciation for the popular TV show, Undercover Boss, in which business leaders from large corporations spend several days working alongside lower-level employees.

In an episode on Subway, Don Fertman, the restaurant chain’s Chief Development Officer, goes undercover at several locations across the United States. Most of the episode includes your typical Undercover Boss fare — a bumbling executive, dedicated workers, teer-jerker employee recognitions — but I was struck by a particular branch that Fertman visits along the way.

Located in the heart of Buffalo, New York, the restaurant is located in the same building as True Bethel Baptist Church, and further, is owned and operated as a franchise by the church itself. The reason? To provide employment and job training to the surrounding neighborhood. (more…)

A recent report from the CBO contains an appendix detailing updated estimates of the labor market effects of the Affordable Care Act (ACA). Pundits for and against the ACA have wasted no time in putting their own particular spin on the projections. Republicans and some other opponents have seemingly celebrated the idea that these estimates may show that the ACA is “a job-killing, economy-crushing villain,” while Democrats and some other supporters have claimed that in times of high unemployment, it’s “an economic benefit” that some will be voluntarily reducing hours or dropping out of the labor force because that means greater demand for labor — those currently unemployed would therefore have more options.

So who’s right? These are mutually contradictory claims, or so it appears. The report is ultimately limited and mixed, but nevertheless raises some serious concerns, caused, in part, by the polarization of Congress both when the law was passed and up to the present. (more…)

jobs-reportThis morning the federal government released the latest jobs report. You may have noticed confusing headlines and reporting about the data, such as this story from NPR, “Job Growth Less Than Expected, But Unemployment Hits 5-Year Low.” What does that mean? Is that bad news mixed with good news? How should we interpret the jobs report?

Here’s what you need to know to understand what the job report is, what it tells us, and what it means for the economy:

What is the “jobs report”?

The “Jobs Report” is the term often used to refer to the Employment Situation Summary, a monthly report issued by the Bureau of Labor Statistics that is based on surveys used to monitor the labor market. This report is released on the first Friday of every month.

Why is the jobs report considered so important?
(more…)

A new study by Grand Valley State University professors Leslie Muller and Paul Isely suggests that the Affordable Care Act has already cost West Michigan 1000 jobs. Muller summarized the results in a Wood TV story:

“Firms are actually holding off on hiring or their reducing their hiring that they were thinking they were going to be doing because of the ACA,” said Muller.

The 1,000 jobs lost does not include the number of workers in West Michigan that have lost hours to ensure that they are kept as part-time employees. Nearly one-third of companies said they have cut employees’ hours.

“We’re talking about a thousand jobs in West Michigan that would have been here absent the ACA,” Muller said.

The study found lower-skilled jobs tend to be suffering the most.

(more…)