ICT Role in 21st Century Education & its Challenges.pptx
The Effects of the Great Recession on American Workers: What it Means for Workforce Policy and Practice
1. The Effects of the Great Recession on American Workers:
What it Means for Workforce Policy and Practice
Carl Van Horn, Ph.D.
Professor and Director
John J. Heldrich Center for Workforce Development
and Edward J. Bloustein School of Planning and Public Policy
Presented to the International Association of
Jewish Vocational Services, Toronto, Canada
May 2, 2011
www.heldrich.rutgers.edu
2. The Effects of the Great Recession on American Workers
2
An Unprecedented Recession
The nation’s longest recession
Highest official unemployment rate in 30 years
Over 17 million officially unemployed; millions more
discouraged or underemployed
8.5 million jobs lost since December 2007
Longest average length of unemployment in 62 years
3. The Effects of the Great Recession on American Workers
3
The Unemployment Experience
Source: Van Horn, C., and Zukin, C., “The Anguish of Unemployment,” New Brunswick, NJ: John J. Heldrich Center for
Workforce Development, Rutgers University, September 2009.
89%
55%
53%
84%
78%
60%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Not a Good Chance of Returning
to Previous Position
Unemployed for First Time in Five
Years
No Health Insurance
No Severance Pay
Laid Off, Less than Two Weeks
Notice
Laid Off Without Warning
4. The Effects of the Great Recession on American Workers
4
Employment Status of Workers Who Lost Jobs
During the Recession
August 2009 March 2010 November 2010
Unemployed and
Looking
75% 54% 54%
Unemployed, Not
Looking, Discouraged
5% 13% 13%
Employed
Full time
Part time, don’t
want full time
19% 33% 34%
(26%)
(8%)
Total 99% 100% 101%
Number of
Respondents
1,202 908 764
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich
Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development,
Rutgers University, January 2011.
5. The Effects of the Great Recession on American Workers
5
Employment Status by Demographic Groups
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich Center’s Work Trends
Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, January 2011.
Employed Not in Labor
Force
Unemployed
and Looking
for Work
Total % Total
Number
Age
18 - 34 41% 12% 47% 100% 161
35 - 54 32% 12% 57% 101% 332
55+ 21% 17% 62% 100% 271
Education
High school or less 33% 17% 51% 101% 198
Some college 28% 5% 67% 100% 265
Bachelor’s degree
or higher
43% 14% 42% 101% 301
Gender
Male 35% 13% 53% 101% 378
Female 31% 13% 56% 100% 386
Race/Ethnicity
White, non-
Hispanic
37% 12% 51% 100% 542
Black, non-
Hispanic/Other,
non-Hispanic/
Hispanic
29% 11% 60% 100% 150
Income
Less than $30K 27% 14% 60% 101% 245
$30K - $60K 29% 10% 61% 100% 244
More than $60K 56% 16% 28% 100% 275
6. The Effects of the Great Recession on American Workers
6
Duration of Unemployment
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich
Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development,
Rutgers University, January 2011.
47%
22% 23%
24%
22%
12%
15%
32%
29%
10%
16%
35%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Wave 1 Panel, August
2009
Wave 2 Panel, March
2010
Wave 3 Panel,
November 2010
0 - 6 Months 7 Months - 1 Year 1 - 2 Years More than 2 Years
7. The Effects of the Great Recession on American Workers
7
Severe Financial Impacts of Unemployment
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich
Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development,
Rutgers University, January 2011.
Economy has
Major Impact on
Family
Poor Financial
Shape
Family’s Financial
Situation is Worse
Compared to Two
Years Ago
Have a “Lot Less” in
Personal Income
and Personal
Savings
Full Sample 61% 46% 57% 58%
Employment Status
Unemployed 67% 60% 61% 65%
Long-term unemployed 75% 74% 68% 76%
Reemployed 52% 27% 52% 48%
Age
18 - 34 51% 41% 47% 46%
35 - 54 69% 51% 64% 67%
55+ 67% 47% 66% 65%
Education
High school or less 58% 49% 57% 61%
Some college 67% 53% 59% 60%
Bachelor’s degree or
higher
59% 31% 55% 48%
Gender
Male 61% 49% 61% 57%
Female 61% 42% 52% 59%
Race
White, non-Hispanic 56% 45% 59% 57%
Black/Hispanic 69% 48% 54% 61%
8. The Effects of the Great Recession on American Workers
8
Reduced Spending During the Recession
Source: Van Horn, C., and Zukin, C., “Unemployed Workers and the Great Recession: Highlights from the Heldrich
Center’s Work Trends Reports, 2009-2010,” New Brunswick, NJ: John J. Heldrich Center for Workforce Development,
Rutgers University, January 2011.
84%
77% 76%
56% 54% 53% 52%
69%
53%
39%
32%32%
67%
72%
0%
25%
50%
75%
100%
Entertainment Clothing Travel/Vacations Transportation Food Health Care Housing/Home
Upkeep
Unemployed Reemployed
9. The Effects of the Great Recession on American Workers
9
Trying to Make Ends Meet
Unemployed, March 2010
70%
42% 41%
30%
20% 20%
18%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Used Money from
Savings to Make
Ends Meet
Went without
Medical Care for
Myself or My Family
Sold Some of my
Possessions to Make
Ends Meet
Used Food Stamps Forced to Move to
a Different House or
Apartment
Moved in with
Family or Friends to
Save Money
Went to a Soup
Kitchen or Free
Food Pantry
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New
Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
10. The Effects of the Great Recession on American Workers
10
Sinking Deeper into Debt
Unemployed, March 2010
56%
45%
25% 24%
11%
6%
3%
0%
10%
20%
30%
40%
50%
60%
Borrowed Money
from Family or
Friends
Increased Credit
Card Debt
Missed a Credit
Card Payment
Missed a Mortgage
or Rent Payment
Borrowed Money
Against Your House
or from a Bank
Declared Personal
Bankruptcy
Lost my Home to
Foreclosure
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New
Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
11. The Effects of the Great Recession on American Workers
11
The Emotional Costs of Unemployment
August 2009 and March 2010
79
75
69
67
54 54
48 47
42
49
53
47 46
36 35
31
23
17
0
10
20
30
40
50
60
70
80
90
Stressed Eager New
Start
Depressed Anxious Helpless Angry Hopeless Hopeful Motivated
August
March
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New
Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
12. The Effects of the Great Recession on American Workers
12
Personal Impacts of Unemployment
61%
41%
58%
52%
62%
10%
55%
60%
44%
51% 52%
68%
13%
43%
63%
46%
52%
55%
71%
14%
46%
0%
10%
20%
30%
40%
50%
60%
70%
80%
Change in Sleeping
Patterns/Loss of Sleep
Loss of Contact with
Close Friends
Strain in Family Relations Avoid Social Situations
with Friends and
Acquaintances
Uneasiness or
Restlessness
Substance Dependency Quick to Anger
All Unemployed in August 2009 All Unemployed in March 2010 Unemployed in August and March
Source: Borie-Holtz, D., Van Horn, C., and Zukin, C., “No End in Sight: The Agony of Prolonged Unemployment,” New
Brunswick, NJ: John J. Heldrich Center for Workforce Development, Rutgers University, May 2010.
13. The Effects of the Great Recession on American Workers
13
Policy Changes
Extend and reform Unemployment Insurance; ensure
coordination with reemployment services
Enhance advance warning laws; more robust rapid
response
Incent lifelong learning opportunities with emphasis on
attainment of certificates and degrees
Bolster resources for the Workforce Development System
14. The Effects of the Great Recession on American Workers
14
Practice Reforms
Link workforce development with economic development
and employer needs
Build stronger connections with other organizations that
serve the unemployed
Expand on-the-job training and apprentice programs
Enhance labor market intelligence to help job seekers
Set and enforce standards for program quality
15. The Effects of the Great Recession on American Workers
15
Contact Information
Carl Van Horn
vanhorn@rutgers.edu
732.932.4100 x6305
www.heldrich.rutgers.edu
