Middle-aged and jobless But still too young to retire

Posted on 28. Dec, 2008 posted by Bill in Employment News, Resumes

Older, more experienced workers have mostly been safe from job losses in the recent past

But not this time around.

The number of unemployed men between 45 and 54 years old has grown faster than any other age group nationally, an Enquirer analysis of federal data finds. Nearly 1.1 million middle-aged men were jobless in that category in November – more than double the number from two years earlier. Compared with a decade ago, the number has risen 181 percent.

And the trend appears to be playing out locally, at least as reflected in a sampling from the Job Search Focus Group one rainy Monday morning.

"The numbers are getting staggering as to how many people over 45-55 we’re seeing," says Bob Pautke, president of the organization that provides support and job search tips every week in the basement of Hyde Park Methodist Community Church.

Attendance in the group has stayed steady at about 120 a week, Pautke says, with about 15-20 new members joining every week. But Pautke says the percentages are increasingly tilting toward older workers.

"For many of these folks, it’s the first time they’ve been through something like this," Pautke says.

And an increased number of unemployed, older workers has potential implications far beyond that age group.

Middle-aged workers typically have higher incomes and spending habits, as well as more dependents and debt, than the population as a whole.

"They have kids going to college, they have car loans, et cetera, so the impact is greater," says Andrew Sum, an economics professor and director of Northeastern University’s Center for Labor Market Studies in Boston.

Local numbers are not yet available, but overall, there were 1.8 million unemployed workers age 45 to 54 nationally last month. That’s 84 percent more than two years ago and 139 percent more than November 1998.

The rate for that age group was 3.9 percent for 2007 in Ohio and 2.5 percent in Kentucky – and those rates are certain to be higher now, experts say.

The numbers don’t show what types of jobs the workers once held. But older workers earn more because of their experience and the fact that many were managers.

In the third quarter of 2008, the 45-54 age group had the highest median earnings, at $842 per week, nationally when compared with other workers, according to federal statistics.

As the total number of jobless workers has grown, so has the middle-aged group’s unemployment rate. It was 5.1 percent in November, up from 4.5 percent in October and 3.3 percent in November 2007.

That compares to 6.1 percent for all workers nationally in November, and 6.1 percent for workers locally.

Traditionally, young and unskilled workers are hit hardest during economic downturns, and this recession is no different. Workers aged 25-34 are the largest group of unemployed locally – 2,316 in November. And local workers aged 16-19 had the highest unemployment rate – 20.4 percent.

"The losses right now are very closely aligned with age. No one wants younger workers," Sum says. Learning new rules

Some out-of-work baby boomers are beginning to wonder if anyone wants middle-aged workers either. Those who have never been out of work are finding it especially difficult to land a new job.

Roger Bernier had been a data analyst for 22 years for Mason-based eyewear maker and retailer Luxottica when he was laid off on May 1.

Nearly eight months later, the 58-year-old West Chester man is still looking for work.

"I can’t retire early, because my ‘201(k),’ as I put it, is worth about half of what my 401(k) was just last year," Bernier says.

"I had gotten to the point that I was assuming I would retire from this company, as have many in my predicament. We’re not the same as the younger generation, which feels that you have to jump around to get ahead."

Bernier also is learning the new rules of a job search.

"Applying for a job online and sending your resume in to a company is like sending it into a black hole anymore," he says.

"A couple of things I’ve learned the hard way: By the time you see the job posted, it’s probably already been filled. And you shouldn’t ever expect an answer back to tell you that you are out of the running."

Northeastern’s Sum says that, statistically, older workers have a harder time getting a new job after being laid off in the first place.

"And when they do, they suffer the greatest wage decreases compared with workers of other ages," he says. The ’social-networking’ era

Job-training expert Scott Henderson says many laid-off middle managers also aren’t equipped to compete with younger workers who are more technologically savvy.

"Many of these folks haven’t adapted to the new way of doing things with things like (social networking Web sites) LinkedIn and Facebook," says Henderson, who runs Forest Park-based career training and counseling center Protrain & True North Career Services.

Liberty Township resident Lee Murphy, 50, thinks another factor may be working against him.

A 32-year veteran of General Motors who lost his job last year, Murphy says he proudly identifies himself as African-American on his resume.

(The November unemployment rate for local African-Americans was 11.2 percent; it was 6.1 percent for whites.)

"But I haven’t gotten one nibble as an older black man, and a lot of people have advised me to take that off," says Murphy, a trained engineer with an MBA, who’s trying to launch a local Web hosting and design business.

"I guess I’m just stubborn."

By James Pilcher – jpilcher@enquirer.com from Cincinnati.com.

EmploymentDigest.net

Middle-aged and jobless But still too young to retire

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