Out of Options

Out of Options

Abe Gorelick has decades of marketing experience, an extensive contact list, an Ivy League undergraduate degree, a master’s in business from the University of Chicago, ideas about how to reach consumers young and old, experience working with businesses from start-ups to huge financial firms and an upbeat, effervescent way about him. What he does not have — and has not had for the last year — is a full-time job.

Five years since the recession ended, it is a story still shared by millions. Mr. Gorelick, 57, lost his position at a large marketing firm last March. As he searched, taking on freelance and consulting work, his family’s finances slowly frayed. He is now working three jobs, driving a cab and picking up shifts at Lord & Taylor and Whole Foods.

“I’m not in my basement, unshaven, unshowered, drinking a bottle of Scotch a day,” Mr. Gorelick said. “I’m out there working these jobs, meeting people and trying to make something happen. But it is exhausting. It is stressful. It is difficult.”

For people experiencing such long spells without appropriate work, it is a crisis. Often, it is also a conundrum: What should a worker who finds himself out of a job for six months or more do?

“There is this very pressing issue,” said Ofer Sharone, a sociologist at the Massachusetts Institute of Technology, “and there is this great gap in knowledge about what to do about it, both for policy makers and these individuals.” Should long-term jobless workers seek out career counseling? Should they accept far lower salaries? Should politicians revamp training programs? To those questions, and to many others, there are too few answers.

In Washington, the plight of the long-term jobless has largely faded from the policy conversation. At the moment, the federal government offers virtually no help to the 3.8 million Americans who have been out of work for more than six months. The maximum duration of unemployment insurance payments fell from as long as 73 weeks to 26 weeks in most states in January.

A jobless aid bill is expected to win final approval from the Democrat-controlled Senate early next week, but it is not expected to pass the Republican-controlled House as currently constructed.

Other programs to aid financially distressed families — like food stamps and job training — are not aimed at the long-term unemployed. Jesse Rothstein, an economist at the University of California, Berkeley, has found that the average worker’s income is halved when he loses his job. When his unemployment insurance ends, his income drops again. At that point, the share of such families falling below the poverty line doubles.

Yet there is increasing evidence that a stronger recovery alone might not significantly aid the country’s long-term jobless. Even before the latest monthly job figures are released on Friday, short-term unemployment has fallen to its prerecession level, but long-term unemployment remains more than twice as high as it was in 2007.

New research by Alan B. Krueger, the former chairman of President Obama’s Council of Economic Advisers, and his co-authors found that only one in 10 workers who had been unemployed over an extended period of time in a given month between 2008 and 2012 had returned to full-time work a year

In part, that might be because the long-term jobless become discouraged and reduce the intensity of their job searches. But it also appears that employers discriminate against the already out-of-work. Rand Ghayad, a researcher with the Massachusetts Institute of Technology, performed a study showing that businesses were more likely to call back a working candidate with no relevant experience than a long-term jobless candidate with relevant experience.

This fall, Mr. Sharone and some colleagues founded the Institute of Career Transitions to help understand what workers and policy makers should do.

In its inaugural study, the institute is using long-term unemployed workers, including Mr. Gorelick, as guinea pigs, comparing the outcomes for workers assigned career coaches to the outcomes of those not offered that form of help. “The idea is that in time, we should be able to say whether that intervention is effective, and we will have a lot of qualitative data about the lives of these workers as well,” Mr. Sharone said.

Intensive career counseling might help the long-term unemployed, Mr. Sharone and his colleagues figured. Coaches could help the long-term jobless optimize their résumés, refrain from flagging in their job searches, make new connections and beat common human resources screening techniques. And if career counseling does not reduce the jobless rate, that would be valuable to know too.
Ofer Sharone, a sociologist at M.I.T., and some colleagues are studying people who have been unemployed for a long time. Credit Mylan Cannon for The New York Times

The institute separated hundreds of volunteers into two groups, some assigned career coaches and some not. All agreed to complete weekly surveys about their experiences looking for work and their employment status.

On a frigid winter evening, 18 of the participating career counselors — all of whom are working free — met in Mr. Sharone’s basement to snack on cheese and crackers and share tips about how to best help the long-term jobless. “He really likes the accountability of coming to me on a regular basis,” Nancy Dube, a human resources consultant, said of one of her clients. “He can’t wait to come back! And I think it’s helped motivate him in other elements of his job search.”

Here is the math. Presume reasonably that during the past 25 years he earned $100,000 annually, taking home $60,000 after taxes, and that…

I lost my job in March 2008. The effects of the recession were yet to be seen. At 38, I thought my job hunt would be as it had always…

My heart goes out to Abe Gorelick. I had the same problem 20 years ago after a long-running career in management consulting. I’m now…

The coaches reported that their clients generally had little luck in landing new jobs — just a half-dozen had managed to do so at that early point. But the coaches felt that they had helped to keep their clients’ spirits up and their job searches positive, wide-ranging and intense.

Mr. Gorelick was paired with the career coach Edward Lawrence, whom he has met with about 10 times to talk through his résumé, outlook and job search over coffee at Panera Bread or in the local library. So far, Mr. Gorelick has not landed a full-time position. But he says the sessions have helped him remain an attractive candidate, with phone and in-person interviews taking place.

“He knew nothing about me and had no preconceived notions,” Mr. Gorelick said. “He could look at my work and give me constructive comments in a very objective manner. I think that in and of itself is extremely valuable.”

Mr. Gorelick, who was his family’s primary breadwinner, has struggled to support his wife and children and cover their mortgage. He has fallen into credit card debt, wiped out his retirement accounts and even contemplated selling his house.

“I decided to set my ego aside,” he said. “Since my unemployment benefits have run out, I’m just trying to make a little money with these part-time jobs. But, for perspective, if I combined my income from all of them, that would still be half of what my weekly unemployment benefits were.”

The White House has long pushed for additional policies to aid the long-term jobless, including renewing emergency unemployment insurance payments. “This is a key reason no one should feel a steady-as-you-go recovery is good enough to not require more job-creating policies,” said Gene Sperling, the recently departed director of the National Economic Council. “This form of unemployment has its own perverse dynamic, and public policy should be trying to prevent devastating, negative cycles that gain momentum if left alone.”

With a divided Congress stalemated on most legislation, the White House this winter announced an initiative to urge businesses not to discriminate against the long-term jobless. Expanding programs that act as middlemen between employers and the long-term unemployed — like Skills for Chicagoland’s Future — might be a promising avenue as well, Mr. Sperling said.

“There are models that work,” he said. “But god, considering the magnitude of this problem, you worry that it is not enough.”

“Source:” The New York Times

Previous Post: Make Some Noise! 5 Ways To Boost A Law Firm Brand
Next Post: Profit-Pressure-Prompting Firm Leaders to Swing Ax

Leave a Reply