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Why do people join the ranks of the unemployed

Posted on 09. Aug, 2005 by Bill in Employment News

Why do people join the ranks of the unemployed

Why do people join the ranks of the unemployed?
Most often, it’s the result of significant company changes such as a restructuring, merger, sale or major reorganization, according to an annual career transition survey. Among the respondents who had lost their jobs, 94 percent cited changes at their company as the reason, up from 64 percent in the 2001 survey. That number rose to 75 percent in 2002 and to 79 percent in 2003.

The survey, by Philadelphia-based human capital and transition company DBM, queried more than 27,000 managers and professionals who find their careers in flux.”American companies are still undergoing substantial strategic transitions in order to more effectively compete in an ever-changing marketplace and we do not expect this trend will change in the near future, ” said Charles F. Kalmbach, DBM’s president and chief executive. “Because companies continue to reinvent themselves, whether by developing new business models or new lines of business, DBM expects that 2004’s job loss trends will continue as work force strategies are realigned to match new competitive realities.”In other findings, the average severance pay dropped to 17 weeks last year from five months in 2003. Also, more workers _ 48 percent, up from 41 percent _ said they’d been offered a higher salary.SAY CHEESE: How popular are photos? The inquisitive folks at the Internet’s virtual Main Street, Yahoo Inc., asked that question last month.Of about 15,000 people worldwide who answered the company’s queries, 57 percent said their photographs are more important than love letters from a significant other. More than a third, 37 percent, said they’d grab photos first if their house caught fire.Americans are also apparently the most shutter-happy, topping the list with an average of 45 photos per month.MILITARY CAREERS: With the persistent violence in Iraq and Afghanistan, the Pentagon has relied heavily on military reservists to staff its ranks. Those demands can pose some serious financial issues for many reservists being called to active duty, notes a financial planner and Gulf War military veteran.Bobby Harris, a planner with Hutchinson/Ifrah Financial Services in Little Rock, Ark., offers a few tips:_ Active duty can cut your income anywhere from 10 percent to half. Consider supplemental income sources for a spouse staying home._ List and sort all your own debt. Under federal law, creditors can charge only 6 percent interest for those on active military duty for debts incurred before the active duty begins._ Obtain power of attorney for a spouse or other close relative staying home._ Review all insurance policies._ Discuss your job security with your employer. Your job is protected under federal law, but you need to talk with the boss before you deploy and resolve any questions or issues either of you may have, Harris said.

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Tags: Employment News