Unemployment in older people on the rise

With their savings and investments wiped out by the financial meltdown, the economic crisis has surely claimed people aged 55 and above as its helpless victims. Many belonging in this particular segment of the population are now forced back into the jobs market seeking for work but sadly they are not getting the call back.

In the recently released November jobless report, more than one in every ten Americans are out of work for 12 months or more. Another report by Pew Fiscal Analysis Initiative last April revealed older people had the most difficult time landing a job.

Older workers, who have been working for 20 years or so, find out that their work experience is actually working against them as employers are increasingly looking to hire younger and “cheaper” workers.

Unemployment in the United States spans a broad range of industries including manufacturing and retail. The November jobs numbers showed a weaker-than-expected 9.8 percent unemployment rate, casting a cloud on the Obama administration’s economic strategy.  

A New York Times study shows unemployment rate for aged 55 and above is now twice as it was before the crisis began in late 2008. The same study also reveals poverty is now steadily on the rise in this age group.

Analysts agree that older workers do not only have to hurdle competition against younger workers, but may also find it challenging to get around new technology, which changes rapidly. Many older workers are also questioned by employers on why they were out of work for a long time, diminishing their value on the market.

Rise in jobless rates shows recovery is still fragile

Recently released unemployment numbers surprised many analysts and government officials and certainly made the case for another look at the policies that the leaders in Washington are debating right now. The Dow may have dodged the poor figures to end the week in a high note but it has caused some concern on what to do next in a seemingly fragile economic recovery.

The latest report from the Labor Department showed a 9.8 percent rise in unemployment for the month of November, the highest since April this year. The worse-than-expected job numbers had many analysts scratching their heads because of improving retail and manufacturing numbers in the past months.

Politicians particularly the Republicans in Congress were quick to build their case against any move to increase taxes.

However, some argue that neither tax cuts nor tax credits can fix the problem since businesses are not able to grow anyway with the current economic situation where demand is anemic.

Economists generally projected a 150,000 rise in payrolls but the Labor Department announced only a 39,000 increase from the same period last year. Declining manufacturing jobs hurt the Obama administration’s efforts to bring Americans back to work.

Underemployed workers—people who work part time but hope to find full-time jobs—continue to remain high at 17 percent. The number of people unemployed for 6 months or more is at its highest in 3 months.

This is particularly surprising since November is usually the month where retailers begin to hire more workers because of the start of the shopping season.