Employment
7 Feb
The recent unemployment figures have me thinking and wondering. I’m no employment expert or economist. But I wonder if we’re just going to have to deal with 90% of America being employed for a while, and…is it really bad? Consider this.
As a result of the recession I lost my job in 2008. Out of necessity I started my own business. So, while the government may have considered me unemployed for some time, and still may for all I know….I’m doing well enough sustaining myself utilizing my own expertise built over the years. So I wonder how many of that 10% are making on their own as independent contractors, establishing their own LLC’s and going it alone, or from what I’ve been reading in several sources, making do with one income.
We give “getting back to family values” a lot of lip service. But perhaps like many of our parents (mine included) many families are returning to a one-income household and just doing without some of the “stuff” we’ve become so accustomed to yearn for over the past decade or two, or even three. With me working out of the home, I’m able to do more household chores that we shared, I’m home when my kids get off the bus, I can get “stuff” done during the day that we used to have to do at nights or on the weekend, and frankly I think we’re all just a little less “stressed” these days. How many of you find yourself in similar situations? And, how is that working for you and your family?
So I’d like to hear what your situations are readers. And if any of you have a take on the unemployment numbers, maybe more about how their calculated and if you think 95% of America needs to be employed to move forward, then please chime in.
Oh, and let’s please not make this a political discussion. It took a lot more than any one President or administration to get us here, so party bashing comments will get tossed. Rational, logical opinions and arguments are always welcome…bashing or piling on…gets us nowhere…
Thanks,
Barry
Tags: employment
Unemployment is usually a lagging economic indicator and it usually takes at least a year after a recession before there is noticeable job growth. Unemployment peaked at 10.8% in the latter part of 1982 and did not go much below 9% until late 1983, after the economy was growing at a 7% per year clip. It may be hard to believe, but pundits were writing Reagan’s political obituary in early 1984 but unemployment eventually dropped (but really never much below 6% in the 1980s) and he won easily in ’84. There are many differences between today’s downturn and the early ’80s, but if the history of other recessions is a guide, we should see some employment growth later this year but probably not enough to bring unemployment down to where is was in 2006 and 2007.
Thanks Bill. I wonder though if we really need 93 to 95% employment for the economy to grow? I mean, what happens if a large portion of our society decides to go at it with one income vs. two? Back in the 60′s my family and most of my friend’s families were one-income, meaning there were a lot of American’s without payroll jobs… What do you think will be the outcome of this, should we decide that we’re willing to forego the second income?
We certainly don’t need 93-95% employment for the economy to grow, but if unemployment stays in the 9-10% range, it’s hard for the economy to grow much. While there are advantages to having someone stay at home, if it’s not by choice and the stay at home person really wants to work (not just for more stuff but to feel that they are fulfilling their potential), then it’s hard to imagine how that is a better situation for all involved. I do agree that through the “creative destruction” process many a great company was born, but we still need to make sure that there is a demand for the goods and services produced by the new businesses.
My wife left the workforce quite a while back; she has a strong resume but has always wanted to be a full time homemaker. We live very conservatively so we really don’t have many lifestyle changes to make. I lost my job a year ago and so far haven’t been able to find another one even though I have skills that are very marketable and am acquring new skills at your (the taxpayers’) expense. After living on our savings and unemployment and busily retraining for so long I finally gave in; my wife has been forced to take a temp job. My job went overseas, but not to take advantage of cheap labor – my company was forced to go where the customers are. As a pragmatist and capitalist I don’t blame them. As more people are forced to accept the one-income lifestyle our economy will have to adjust to the radically reduced GDP; this will be painful for those accustomed to living in “unconscious prosperity”. P.S. Who gets to decide what “living up to one’s potential” means – us or God?
Thanks for responding Jon. How are you and your wife adjusting to your new arrangement? Is she, you, your kids happier? Do you have more time to just “be.” As a family with similar situation to yours I can say financially we’re not as well off as of now (although my business is starting to get good traction), but as I said in my first post, we’re far better off emotionally. Less stressed etc…like you, we’ve lived within our means with a few frivolities thrown in from time to time…and unlike many of our friends we’ve weathered this storm better than most…I must say my wife has a pretty much recession-proof job as a nurse of 25 years, so we can almost always count on one income… So how are you all coping emotionally and as a family, if you care to share… And thanks again for posting.
I love your article. My hasband and I both had very professional jobs out of the home, which we needed to cover child support. We also moved across the country from any family, to live in a place where we could afford. I always dreamed of being a stay-at-home mom and hoped to be able to do so once child support ended. Then my husband got laid off last year. It was almost a blessing. Now he stays home with our children and does a wonderful job teaching them and helping out with the housework, all while still looking for a job, and trying to start his own business. We have so much extra time to enjoy as a family in the evenings and weekends without all the stress of daycare and everyday chores. I think learning to live on one income is great. But I do hope that our roles will reverse someday so that I can be the one staying home. I hate missing the “firsts” with our young child, but I’m happy that at least my husband is getting to experience them and not the daycare!
Glad to hear that Rebecca. My wife still works out of the home as a nurse, so I think she shares your sentiment. I don’t know how long it will be until my marketing business can sustain our entire family plus medical insurance, but I’m sure that some day that will come. I think there are many cases like yours and mine that are skewing the “unemployment” picture. The dust will settle and perhaps our country will learn a valuable lesson, one that your family and mine has already learned…it can be done….and it can be quite beneficial! Thanks for chiming in!