Discouraging

Yesterday evening as we drove home from watching the 3-D version of Avatar, we noticed a woman at a stoplight. As soon as cars came to a stop at the traffic light, she stepped off from the sidewalk to brave the still-slippery spots of the icy road in order to beg for money. She passed from car to car, holding up a one-dollar bill in mute request for more. I thought of her later as I remembered Judy Woodruff's report about jobs in December: the percentage of joblessness was remaining steady--but that was in light of the fact that 600,000 people had stopped looking for jobs.  Where does the government get the numbers for unemployment statistics? I had been told that the number comes from unemployment offices and that it is derived from the number of people still seeking employment and receiving benefits. The answer is more complicated than that, however, and is described on this website of the Bureau of Labor Statistics: http://www.bls.gov/cps/cps_htgm.htm

Just as discouraging as the number of folks who quit looking for jobs last month (for whatever reason), is the information about what recently re-employed people are discovering in the current economy. Most folks take a pretty hefty pay cut with the next job. And this pay cut affects their future earnings:

[P]eople hired at lower wages in a tight job market tend to lag behind their peers for years, sometimes decades. For example, workers laid off during the 1981-82 recession earned 20 percent less than people who remained in a job — even 20 years after they were rehired, a Columbia University study found. The study examined pay for white- and blue-collar workers, managers and hourly workers. ("For the Unemployed, New Job Often Means a Pay Cut," Christopher Leonard, Associated Press Writer, 10 January 2010)

In addition, "[m]ore than six people are now vying, on average, for each job opening, according to Labor Department data — compared with just 1.7 workers per opening when the recession began in December 2007." (my emphasis)

Some institutions benefit from joblessness. I read a recent article that reported a tremendous rise in the number of people returning to college, particularly to community colleges, and the number of traditional students who are choosing less-expensive colleges closer to their homes. (See Washington Post's "Community Colleges Get Influx of Students in Bad Times," by Valerie Strauss, 31 May 2009).  However, many community colleges are unprepared for this huge influx of students, for their state funding has been hurt by the economic downturn as well. (See "Community Colleges Get Squeezed," by Brian Burnsed, Business Week, 15 January 2009) One consequence is that community colleges are hiring more part-time faculty.  Look at the employment pages of any community college and note how many adjunct positions are being advertised. For instance, as of last year, New Jersey's Burlington County College was planning "to hire up to 200 new adjunct faculty members, increasing its part-time teaching staff to about 575, at the same time that the college faces a drastic cut of nearly 42 percent from the county and state."

Such part-time jobs for educators might sound great in this tough economy, but the pay for those jobs is often very low, particularly in the South, and those part-time positions also offer little or no benefits.  In a country where one receives better access to health insurance through full-time employment, that's not good news.

(For more on part-time faculty at community colleges, see Inside Higher Ed's The Part Time Impact," 16 November 2009).

Laying People Off

The president of Georgia Perimeter College sent an e-mail to all faculty and staff last week regretfully announcing that the Continuing Education and Corporate Education division of the college would be closed and staff of that division laid off. More lay-offs will surely come, especially if Governor Perdue's task force, "Tough Choices or Tough Times," has its way in merging community colleges with technical colleges, a move that would surely cut many positions in community colleges as well as have other detrimental effects. (Ridiculously, Georgia Perimeter College, with its enrollment of 23,000 students, would be absorbed by a technical college such as Dekalb Tech, with its 4,000 students.)

Blogging on Huffington Post, Nanette Lepore, fashion designer, tearfully dismisses her staff as she cuts back on her business and regrets so blindly enjoying the high life during the boom times: "Why did it come to this? Where were our leaders? Why weren't enough people questioning this falsely inflated boom? Why did we all decide luxury was an entitlement?" Well, Nanette, while I appreciate your sympathy for the young staff members you wish you could keep, many of us don't live in luxury; nor do we think luxury is an entitlement. We just want to have meaningful work, to make enough money to support our families and to put our kids through college, and to enjoy the fruits of our labor in retirement. Now, according to the Georgia Department of Labor, Georgia's unemployment rate is 9.3%. I suspect it will get worse.