Unemployment hits your wallet for a long time

[Donnachaidh]

http://www.marketwatch.com/story/unemployment-hits-your-wallet-for-a-long-time-2010-08-18

Job loss can lead to long-term negative effects on finances, children

WASHINGTON (MarketWatch) -- Since being laid off as a machine operator more than a year ago, Robert Blalock has drained his individual retirement account. Now the 56-year-old resident of Fernley, Nev., doesn't expect to retire until his 70s.

"We make our house payments, but it's month to month," Blalock said. "If I don't get a job pretty soon we may end up going into foreclosure."

Blalock is one of millions of Americans who will experience a long-term lifestyle scar due to a job loss.

The long-term negative effects of unemployment can take different dimensions, said Harry Holzer, an economist at Georgetown and the Urban Institute. There will be earnings losses, and kids may have trouble in school, he and other economists said.

For those who lose a job, the consequences of a layoff are "severe and long lasting," Till von Wachter, an economist at Columbia University, recently testified before U.S. lawmakers.

"The average mature worker losing a stable job at a good employer will see earnings reductions of 20% lasting over 15 to 20 years," von Wachter said.


More at the link ---

[RockaFowler]

1. Haven't tapped the 401K yet, but soon

We're living from month to month now. It sucks

[HughBeaumont]

2. Any financial setback can result in months, years, even DECADES of financial hardship:

http://journals.democraticunderground.com/HughBeaumont/102

[xchrom]

3. recommend

[zipplewrath]

4. The effects of this are huge

Many folks have not yet begun to experience the effects this has had on them. 10 years or more of equity in homes, 401K savings, and just general investment losses are gone. People will begin to reach retirement age and the common investment features won't be there. They won't be able to sell their home for a profit, and move into smaller retirement homes with some cash left over to live upon. Their 401k's will be too small to provide the supplements they will need to carry them into their retirement years. Their savings in general won't pay for the kids college, so they will borrow and have to work even longer to pay off those loans.

This has caused a permanent change in the economic future of this country. The cat food commission is about to expand that as well.

[ipaint]

5. For lower wage workers in their 50's and up it is even more devastating.

Not everyone at that age is middle class with a home and a 401k.

25% of baby boomers have no retirement and another 25% have saved too little to retire on. 50% of baby boomers have to keep working and those numbers are pre-recession.

The jobs that low wage workers could count on to get them through downturns are now scoffed up by middle class unemployed and new to the workforce people with degrees. Non degreed or older lower wage workers are pretty much fucked.

The job market has permanently collapsed for these people, never to come back in their working lifetime.

The plan currently is to watch them die.

[Brewman_Jax]

6. The pain doesn't end when employed again

My brother lost his job and was unemployed for about a year. In the meantime, he burned through savings, 401(k) account, ran up credit cards, etc. He's been employed for over 2 years, and he's still paying off the debts accumulated while he was unemployed. He said that it could take another 2-3 years to clear the debts and start rebuilding the retirement account.

[NikRik]

7. Out of work 2+ years !

Being unemployed for this long has destroyed my marriage of 16 years my relationship with my children 15 and 13 years old and they most certainly are doing worst in school ! I applied to every place I can think of for work and at 53 years old and a male I beginning to believe Iam what they call one of the unemplyable.Plus almost all job openings are part time so they would make little differance in this struggle to keep food on the table a roof over our heads.It really a nightmare that seems to not have any end in sight.The next thing is homelessness,we rent in the San Francisco Bay area a two bedroom condo for $1,375 per month and we have no idea where our rent the end of August is going to come from. As a father and the one who is responsible to support my family I feel like a complete failure and the depression runs deep. I was in Jewelry Sales for the last 10 years+, however even those jobs seemed to disappear with the current economic times. After all who except the richest amoung us is buying jewelry ? Its one of the first things people stop buying during a recession. I have prayed to God more then I ever had in all my previous years, I guess he is busy with bigger more important problems !
:-( Take Care NikRik

[Donnachaidh]

8. We understand your plight completely Nik

my DH was underemployed for 18 months, and if it wasn't for my disability benefits we would have been homeless within 6 months of his layoff. We burned thru everything too. And it got to the point that every single waking moment was spent calling agencies that *might* help out with bills. And going to foodbanks. And calling other agencies that *might* know of places that could help. And sitting through meetings with federally-funded church groups who were NOT supposed to proselytize -- proselytize in order to get that help at the end of the meeting. It's humiliating, it's degrading -- and at the end WE were blamed for our *misfortune* - not the business owner who played financial craps with hiring un-documented workers and extending credit to contractors who could not or would not pay up when bills were due -- WE were the villains.

The best advice I can give you is this -- become FEARLESS in your search for aid. If one group says they cannot help -- insist that they help you find someone who CAN. Just refuse to let up until they can. Don't give up. ALWAYS ask for other references - because they are more likely to give you other agencies, especially if they want to get you off their back. NO is not an option. And many of these agencies think if they say no you'll just go away -- don't. And if you haven't applied for state aid - do so. If you were like us, your situation changes daily. So one day you may not be eligible - but the next day you might be.

Start keeping lists of groups, and track where the help has come from. And keep going back if something is there to be had. Don't give up. And sign up with EVERY temp agency you can. DH finally got a permanent gig thru an agency. And once signed on, keep calling them daily even if they tell you just to call once a week. They too will find you something, just to get you off their backs. It worked for us.

If you need any other advice, please feel free to pm me. We're still recovering, but I know how hard it is to keep the faith in yourself. You are NOT alone. Remember that!