Friday, April 5, 2013

The New Unemployables

I'll post a few items that try to help explain why the unemployment rate is so high, especially since corporate profits are up, and the stock market returned to record territory once again.

Older workers - those in their 50s and above - "were less likely to lose their jobs during the recession, but those who were laid off are facing far tougher conditions than their younger colleagues. Workers in their fifties are about 20% less likely than workers ages 25 to 34 to become re-employed."

Reports show they are actively seeking work, but find themselves less employable than younger, recent graduates.

Is age discrimination a factor?

Older workers also have the longest bouts of unemployment. The average duration of unemployment for workers ages 55 to 64 was 11 months as recently as January, according to the Labor Department. That's three months longer than the average for 25- to 36-year-olds.
Given these circumstances, many workers can't help but think age discrimination is a factor. AARP's Public Policy Institute surveyed unemployed baby boomers in 2010 and 2011. While 71% blamed their unemployment on the bad economy, almost half also said they believed age discrimination was also at play.
About 23,000 age discrimination complaints were filed with the Equal Employment Opportunity Commission in fiscal 2012, 20% more than in 2007.
Proving discrimination is next to impossible, though, unless it's blatant.
"It's very difficult to prove hiring discrimination, because unless somebody says, 'you're too old for this job,' you don't know why you weren't hired," said Michael Harper, a law professor at Boston University.

Here are two studies that try to get to the bottom of what;s driving this:

- The New Unemployables.
- Age Disparity in Unemployment and Reemployment During the Great Recession and Recovery.