MintLife Blog | Personal Finance News & Advice » unemployment

The Unemployment Situation in Perspective

Ross Crooks — Fri, 19 Mar 2010 16:45:20 +0000

By any measure, the unemployment rate is on the rise. But exactly how bad is the problem and what are the implications for the broader economy? To put things in perspective, we need to consider how the unemployment rate is calculated, who is considered employed and who isn’t. Many claim the official rate is flawed and presents an optimistic picture that doesn’t truly reflect reality. Other quoted statistics measuring job loss can be deceptive if selective time periods are used. In our latest infographic we have taken a broad view of the American workforce over the last five years showing the various employment conditions and how each is categorized.

Embed the above image on your site
<a href="http://www.mint.com/blog/wp-content/uploads/2010/03/MNT-EMPLOYMENT-PERSPECTIVE-R6.png"></a> <a href="http://www.mint.com/">Budget Planner</a> – Mint.com

Mint Map: Where the Jobs Will Be

Ross Crooks — Fri, 19 Feb 2010 18:32:08 +0000

With the current unemployment rate at 10.6 percent and soaring even higher, you might have to seriously consider relocating in order to find work. You know what the say about the grass being greener? Well, our latest map shows that not all cities are faring equally in our current economic climate and in fact some are actually growing. Take a look to find out which cities are projected to have the greatest number of new jobs created, as well as those with the fastest rate of job growth over the next 20 years.

Embed the above image on your site
 <a href="http://www.mint.com/">Budgeting</a> – Mint.com

Is Grad School Worth the Money?

Laura Sullivan — Tue, 16 Feb 2010 20:23:46 +0000

Laid off? Time for Grad School?

So you had a job that you liked (and hopefully not loved) but you, like 9.3 million other Americans, are now jobless. Sitting around in gym shorts sending desperate resumes and cover letters is getting tiring (how many times can you hear the words “hiring” and “freeze” next to each other?), and you’ve always dreamed of being a therapist or photographer or just getting an MBA so you can tell your former Ivy League colleagues to shove it. Should the crappy economy drive you to get a Master’s Degree?

First consider my story: I got a fine degree in the liberal arts. You know the kind, practical, career-oriented and… other buzz words that I am not finding in Nietzsche’s Collected Works. Despite how well prepared I was for the real world (snark!), I decided to go back to school for journalism. After some time in the Illinois corn fields, I had a snazzy master’s degree. But, wait, no one cared about a degree in journalism. And because the “advanced professional” degree basically crammed a four-year program into one, I had the same classes and teachers as students four or five years younger than me, but no internships—those things that get your foot in the door. In fact, on more than a few interviews, I was told that the degree kept me from getting potential jobs because employers were afraid that I’d ask for more money. (And trust me, I’d be doing the same grunt work as a not-yet-jaded 21-year-old.) Ouch.

Some degrees are just a very expensive way of boosting your personal morale when there’s a scary gray area in life—and convenient patch in a university’s bleeding budget–and some are actually empowering career moves. Before you move to the cornfields, please, please do these three things:

Do a cost/benefit analysis

The Council of Graduate Schools sings a pretty convincing tune in its publication Why Should I Get a Masters Degree. The number of degrees awarded in 2007 was up 43 percent over a decade earlier. (Please note that the latest data available is generally for 2007 and 2008, the 2009 school year doesn’t have much released data yet.) According to the publication, a person with a grad degree earns on average $10,000 more per year. He also moves up faster in his career and is more likely to be employed. (The Council also argues, nonsensically, that getting a graduate degree can actually improve your health—in fact, there is a correlation between education and health, but correlation is not causality. Thank you, liberal arts degree, for something useful!) And, yes, the Bureau of Labor Stats agrees, education pays.

The average yearly cost for postgraduate study towards a master’s is $21,900 for a public school and $34,100 for a private one, according to the Department of Education. That is up 60 percent in just one decade. And those numbers are ballooning even more now. A graduate degree at the University of California, Berkeley: $26,000 per year in fees in tuition, plus $1,170 added on after the recent budget catastrophe, bringing just tuition to $27,170 per year of study. Multiply by two, and add about $8,000 to $10,000 per year for living costs. Your loan = $74,340.

That sounds well and good, but there are some degrees that just don’t pay off in the workplace, and some that do. Andrea J. Koncz, Employment Information Manager at National Association of Colleges and Employers, brings up a few professions that do show major pay increases:

Bachelor’s Degree Computer Science – $61,467 Master’s Degree Computer Science – $68,627   Bachelor’s Degree Electrical Engineering – $60,509  Master’s Degree Electrical Engineering – $70,921   Bachelor’s Degree Mechanical Engineering – $59,222 Master’s Degree Mechanical Engineering – $66,961

Cartooning? Editing? Sports announcing? Check salary.com, and be prepared for the worst.

Understand that it’s now more competitive, especially at the cheaper schools

Grad school applicants always rise in a poor economy; The Council of Graduate Schools reports that applicants were up 4.8 percent in 2008, after being up 8 percent in 2007. This trend is making it harder to get into school because of the increased competition.

Because of the economy, people are also going after the perceived value of public schools. Public schools were almost twice as likely as private schools to report increases in enrollment for 2009-10 (47 percent vs. 26 percent).
So, basically, you might be looking at as tough of a market for school as for jobs. Even if you are willing to invest despite skyrocketing costs, you may not even you your foot in the door, so best to apply to many schools.

Know the difference between wishful thinking and inspired thinking

If you always had a dream to do something, and you’ve got the excuse and time to finally do it, wonderful. The blog Unemploymentality brings up a good point if you are feeling blindly for that inspiration, though. They says that if you claim the maximum amount of unemployment, you’ll clock in around $21,060 per year, while the average grad student stipend is $18,779. You’ll be counting less change as a couch surfer. Another ouch.

And more to the point, buying into yet another dream that graduate school is selling you could just be deferring the problem of unemployment another year or six, all the while acquiring more and more debt. A great article from the Chronicle of Higher Education suggests that you bite the bullet and get some kind of experience, even if it is in a field that you think is “above” your education. All experience leads somewhere and teaches important skills, even if they aren’t the ones you think you need.

At least one self-made woman and career advisor, Penelope Trunk, advises to stay away from graduate school. She says it forces you to overinvest in something while the reward is just too risky. Trunk says, you’re better off working on a chicken farm. Literally.

Mint Map: State of the Unions

Ross Crooks — Mon, 08 Feb 2010 23:44:03 +0000

In 2009, the number of union jobs in the public sector surpassed those in the shrinking private sector. As job loss and business failure has become increasingly commonplace, the face of unions is changing. We take a look at the prevalence of unions as a percentage of the total workforce around the country, and highlight a demographic breakdown of union membership.

Embed the above image on your site
<a href="http://www.mint.com/blog/wp-content/uploads/2010/02/MNT-STATE-OF-UNIONS.png"></a> <a href="http://www.mint.com/">personal finance</a> – Mint.com

Mint Map: Moving for Money

Ross Crooks — Wed, 27 Jan 2010 21:45:54 +0000

In times of plenty, relocating for work usually means a better job or a higher standard of living. But in today’s tough economy, many are finding that they just can’t find work or maintain their standard of living where they currently live. It’s especially bad in New York and California, two places where the economy is suffering and the cost of living remains high. Many of these financial refugees are ending up in Texas, a place where the cost of living is low. And many of those that are relocating are in the very lowest income bracket, a further indication that money is their motivation for moving.

Embed the above image on your site
<a href="http://www.mint.com/blog/wp-content/uploads/2010/01/MNT-MIGRATION-R2.png"></a> <a href="http://www.mint.com/">personal finance</a> – Mint.com

Mint Map: The Year of Unemployment

Ross Crooks — Thu, 14 Jan 2010 00:39:55 +0000

As we enter the new year, there are many signs of hope for an economic recovery. But there’s one area that continues to cause concern. Throughout 2009, unemployment rates increased across the entire US, as struggling businesses were forced to downsize. Of course, some states were hit harder than others. This map shows the year-over-year change for each state, along with the current unemployment rate as of November 2009.

Embed the above image on your site
<a href="http://www.mint.com/blog/wp-content/uploads/2010/01/MNT-UNEMP-CHANGE-R2.jpg"></a> <a href="http://www.mint.com/">budget planner</a> – Mint.com

The Unemployment Game Show: Are You Really Unemployed?

Mint.com — Fri, 04 Dec 2009 15:14:53 +0000

The government is telling us that the economic stimulus is working and the recession is over. But you wouldn’t know it from looking at the unemployment numbers. While we may have dodged another great depression, unemployment is at its worst since then, having fallen to 10 percent by the Fed’s own reckoning. And, while we don’t like to be the bearers of bad news, we do stand for transparency in reporting statistics. So we’ve produced an animated infographic explaining who gets to call themselves ‘officially’ unemployed, and why the government leaves out millions of jobless Americans in their often cited and repeated unemployment rate statistic. So while the economy may be recovering, it might be awhile before many Americans feel it in their wallets.

Embed the above video on your site
<param name="movie" value="http://www.youtube.com/v/Ulu3SCAmeBA&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param></object> <a href="http://www.mint.com/">Free budget software</a> – Mint.com

Embed the above image on your site
<a href="http://www.mint.com/blog/wp-content/uploads/2009/12/UnemploymentGameShow-1.jpg"></a> <a href="http://www.mint.com/">Free budget software</a> – Mint.com

How to Turn Unemployment into an Opportunity

Jim Hu — Thu, 16 Apr 2009 23:35:16 +0000

Great things can happen during the most challenging of times. It may seem difficult to find a silver lining during the worst economic downturn in more than a generation. But if you’re out of a job, or fear your job is slated for the chopping block, retreating into paralysis will do nothing to speed our economy’s recovery. So this is a perfect time to turn a new page in your career and embrace the vast possibilities of reinvention.

Think about it this way. Circumstances outside of your control have forced a lot of free time into your schedule, giving you many options to choose. Learn to exploit this opportunity to strengthen your skills, sharpen your mind, and prepare yourself for your next job. Take it from someone who has gone through two layoffs in a year—once you get over the setbacks of unemployment, turn your attention to the opportunities around you. Maybe you’ll discover a new calling in life that will bring greater personal fulfillment. “The Chinese symbol for crisis includes both danger and opportunity,” said Steve Vislisel, a career consultant with Plan C Partners. “Most people focus on the danger. Be one of the few courageous souls who focus on the opportunity.”

When you are unemployed, there’s one commodity you have in abundance and that’s time. So learn to maximize that time in the following ways:

Network, network, network!

Your personal network is your best asset for finding the next phase of your professional career. With your days free to schedule lunches and meet-ups for coffee, this is the best time to renew acquaintances that you may have let languish when you were working. Consider your vast database of friends, teachers, business partners and colleagues. They are all sources of knowledge and ideas to help you evolve your career and connect you to potential employers. Find them on Facebook and LinkedIn, or send them emails suggesting that now might be a good time to get together. Chances are, a good 90 percent of the people you contact will agree to meet you as long as you position the meeting as a casual conversation to tap their career advice. During your meet-and-greet, remember three things: 1) Your contact will chatter away because people love to spread career wisdom, 2) don’t just tell them what you want, ask them what they need and think about yourself as a solution, and 3) be sure to leave every meeting with a few referrals.

Another approach is to meet people through conferences, gatherings, and social events. Recently I attended a gathering for the unemployed called LaidOffCamp, an all-day event for people to meet, share tips and exchange business ideas. I didn’t meet many employers, but I felt a sense of solidarity with others in my situation. Check out the website because there may be a LaidOffCamp coming soon to a city near you.

The Product Called “You”

Who are you? What do you want to do? These two annoyingly broad and existential questions form the foundation of your career strategy. Think through your answers, because everyone you talk to will ask them, and you don’t want to respond with silence and a confused expression (I speak from experience). I’ve learned that the ideal job blends the things you enjoy doing with things you’re good at doing.

Because you’re selling who you are, consider yourself to be a product that requires some branding and marketing. That begins by understanding what makes your brand unique, and then articulating that message to the people in your network. Don’t just consider your skill set or the functions you may have performed in a previous job. Much as it might pain you to admit it, those things are easily learned. But what can’t be taught in school or picked up on the job are the unique qualities of your personality and the innate values that define who you are. Those qualities can guide you to the job you’re looking for, and alert you against jobs that will be a bad fit.

Mental and physical fitness

Stagnation is the greatest enemy of the unemployed. After years of sitting in front of a computer for 10 hours a day in stale offices, you’ll fall in love with your brain’s ability learn new things. Watch artsy films. Read books. I always wanted to take classes in economics and financial planning, so I enrolled in Stanford University’s night program. They were fascinating and they helped me consider new areas for growth.

The same thing holds true for physical fitness. Yes, it’s great to sleep 10 hours a day, but lunch shouldn’t be your first meal. To keep your body moving you need to move it. If you’re not an exerciser, start with modest stretching and introduce a daily walk around the block. I take short jogs or walks in the afternoon to help me remove mental clutter and reprioritize my list of to-dos.

Learn to manage your money

For most of my career I thought budgeting was for those goodie-goodies who studied on Friday nights in college. After my first layoff, I poured my attention into learning the essentials of personal finance and disciplined budgeting. I became a number-crunching nerd, keeping track of every expense and figuring out creative ways to save money. I realized I was spending a lot on useless crap and eating out all the time. Once I understood my buying patterns, I made smarter decisions to save for a rainy day.

Serve Others

There’s no better way to gain perspective about your situation than pouring your energy into helping people. It’s human to give without expecting something in return, and it brings perspective on what really matters in life. I recently volunteered for a food distribution center and had a great experience talking to people going through tough times. There’s something human about handing food to people in need. Here are some good sites as a starting point: HandsOn Network, Volunteer Match, One Brick, USA Service.

For more of Jim Hu’s writing, visit his blog Gloom to Boom.