Despite some positive signs in the economy, a just released study, No End in Sight: The Agony of Prolonged Unemployment, by the John J. Heldrich Center for Workforce Development at Rutgers University confirms that the vast majority of those unemployed continue to struggle to find work.
In August 2009, the center conducted a survey of 1,202 men and women who had been unemployed at some point in the previous 12 months. Then, in March 2010, it followed up with 908 of them. Researchers found that just one in five (21 percent) of those looking for jobs in August of last year had found it by March of this year. Fully two-thirds (67 percent) remained unemployed and looking, with the remaining 12 percent having left the labor market.
Perhaps not surprisingly, the youngest of the group had the easiest time finding new work, while the oldest had the least success—leading some respondents to offer comments such as “age discrimination is alive and well” … and older workers are “considered expendable.”
The study also found that many of those who were able to find work had to settle for something less than what they had before, with just over half of them reporting a pay cut from their prior job and about one-quarter saying they took a significant salary hit.
Many predicted jobs would be slow to return. But the Rutgers study suggests that slow might be an understatement. Notwithstanding definite signs of economic improvement, companies continue to be extremely cautious when it comes to adding to their ranks. Let’s hope, were the center to do a further follow-up with this group later this year, it might have better news to report.