18 April 2024

Many Americans Do Not Feel Fully Recovered

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Although many official measurements show the economy is recovering, millions of Americans still don't feel like they've recovered from the Great Recession. While official unemployment rates have declined and approximately 10 million private sector jobs have been added since June 2009, many say those numbers don't tell the full story.

As of August 2014, 3 million Americans had been unemployed for more than six months, and more than 2 million had been unemployed for more than a year, according to a new study from the John J. Heldrich Center for Workforce Development at Rutgers University. And even among those who are employed, like Greene, many are underemployed or simply holding placeholder jobs until they can find a more fulfilling (and, often, higher-paying) position.

Beyond the official Bureau of Labor Statistics numbers, the Economic Policy Institute (EPI) estimates there are another 6.3 million "missing workers" who are not being counted as unemployed.

Long-term unemployment and underemployment has had lasting effects: Most of the long-term unemployed say they have less in savings and income than they did five years ago, have experienced stress in family relationships and close friendships during their time without a job, and believe they will need to retire later than planned because of the recession, according to the Heldrich study.

Nearly half of the long-term unemployed said it will take three to 10 years for their families to recover financially, while another 1 in 5 say it will take longer than that or that they will never recover.

Many of those who are getting jobs are struggling to get ahead financially too. That's because many of the jobs that have been created since the recession don't pay as well as those that were lost. Many of the jobs that disappeared during the recession were high- and middle-wage positions. Most of those added back are in low-wage occupations. That means people may be employed but they aren't getting ahead—or even catching up with their former selves.

A recent report by the U.S. Conference of Mayors and IHS Global Insight found that new jobs pay 23 percent less than the positions lost in the recession. The wage gap is "significantly larger" than that of the country's last recession and recovery, the report found, and implies $93 billion in lower wage income.

In addition, many of those who are now working part-time hours may no longer be counted among the unemployed even though they would prefer full-time jobs.  Others, like Mitch Dowell, 43, have launched their own micro-businesses to make ends meet. After being laid off from a marketing job in May 2010, the Washington D.C. resident never found full-time work. To keep his family afloat, he started a one-man graphic design company.

Americans who have not experienced a recovery have learned to live with a new financial reality.

Click here to access the full article on CNBC.

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