Unemployed Boomers Need Help NOW

By Alinda Tugend

I WAS recently talking to a friend at a party whose husband - in his 60s - has been unemployed for more than two years. While there are many challenges, she said, one of the hardest things is trying to balance hope with reality.

She wonders how to support him in his continued quest to find a job in his field of marketing and financial services while at the same time encouraging him to think about what his life would be like if he never worked in that field or had a full-time job again.

“I wanted to move to what I thought was a healthier place. I wanted to turn the page,” said my friend, who asked to be identified by her middle name, Shelley, since she didn’t want to publicize her family’s situation. “He saw it as vote of no confidence.”

For those over 50 and unemployed, the statistics are grim. While unemployment rates for Americans nearing retirement are lower than for young people who are recently out of school, once out of a job, older workers have a much harder time finding work. Over the last year, according to the Labor Department, the average duration of unemployment for older people was 53 weeks, compared with 19 weeks for teenagers.

There are numerous reasons - older workers have been hit both by the recession and globalization. They’re more likely to have been laid off from industries that are downsizing, and since their salaries tend to be higher than those of younger workers, they’re attractive targets if layoffs are needed.

Even as they do all the things they’re told to do- network, improve those computer skills, find a new passion and turn it into a job - many struggle with the question of whether their working life as they once knew it is essentially over.

This is something professionals who work with and research the older unemployed say needs to be addressed better than it is now. Helping people figure out how to cope with a future that may not include work, while at the same time encouraging them in their job searches, is a difficult balance, said Nadya Fouad, a professor of educational psychology at the University of Wisconsin-Milwaukee.

Psychologists and others who counsel this cohort need to help them face the grief of losing a job, and also to understand that jobs and job-hunting are far different now from how they used to be.

“The contract used to be, ‘I am a loyal employee and you are a loyal employer. I promise to work for you my entire career and you train, promote, give benefits and a pension when I retire.’ Now you can’t count on any of that,” she said. “The onus is all on the employee to have a portfolio of skills that can be transferable.”

People in their 20s and 30s know that they need to market themselves and always be on the lookout for better opportunities, she said, something that may seem foreign to those in their 50s and 60s.

If a counselor or psychologist “doesn’t understand how the world of work has changed, they’re not helping at all,” she said. “You can’t just talk about how it feels.”

In response to this concern, Professor Fouad and her colleagues have drawn up guidelines for the American Psychological Association to help psychotherapists better assist their clients with workplace issues and unemployment. It is wending its way through the association’s committees.

Of course, not everyone who is unemployed and over 50 is equal. For some, the reality is that they need to find another job - any job - to survive. Others have resources that can allow them to spend more time looking for a job that might have the salary or status of their former position.

In the first case, Professor Fouad said, “You need to decide what is the minimum amount of money you can make and how to go about finding it.” In the second case, she said, it’s necessary to examine what work means to you and how that may have to change.

Is it the high social status? The identity? The relationship with co-workers? It is important to examine these areas, perhaps with the help of a professional counselor, Professor Fouad said, to discover how to find such meaning or relationships in other areas of life.

Sometimes simply changing the way you look at your situation can help. My friend Shelley’s husband, Neal, who also asked that I use his middle name, said the best advice he received from a friend was “don’t tell people you’re unemployed. Tell them you’re semiretired. It changed my self-identity. I still look for jobs, but I feel better about myself.”

He also has friends facing the same issues, who understand his situation. Such support groups, whether formal or informal, are very helpful, said Jane Goodman, past president of the American Counseling Association and professor emerita of counseling at Oakland University in Rochester, Mich.

“Legitimizing the fact that this stinks also helps,” she said. “I find that when I say this, clients are so relieved. They thought I was going to say, ‘buck up.’ ”

And even more, “they should know the problem is not with them but with a system that has treated them like a commodity that can be discarded,” said David L. Blustein, a professor of counseling, developmental and educational psychology at the Lynch School of Education at Boston College, who works with the older unemployed in suburb of Boston. “I try to help clients get in touch with their anger about that. They shouldn’t blame themselves.”

Which, of course, is easy to say and hard to do.

“I know not to take it personally,” Neal said, “but sure, I wonder at times, what’s wrong with me? Is there something I should be doing differently?”

It is too easy to sink into endless rumination, to wonder if he is somehow standing in his own way, like a cancer patient who is told that her attitude is her problem, he said.

Susan Sipprelle, producer of the Web site overfiftyandoutofwork.com and the documentary “Set for Life” about the older jobless, said she stopped posting articles like “Five Easy Steps to get a New Job.”

“People are so frustrated,” she said. “They don’t want to hear, ‘Get a new wardrobe, get on LinkedIn.’ ”

As one commenter on the Facebook page for Over Fifty and Out of Work said, “I’ve been told to redo my résumé twice now. The first ‘expert’ tells me to do it one way, the next ‘expert’ tells me to put it back the way I had it.”

Some do land a coveted position in their old fields or turn a hobby into a business. Neal, although he believes he’ll never make as much money as in the past, recently has reason to be optimistic about some consulting jobs.

But the reality is that the problem of the older unemployed “was acute during the Great Recession, and is now chronic,” Ms. Sipprelle said. “People’s lives have been upended by the great forces of history in a way that’s never happened before, and there’s no other example for older workers to look at. Some can’t recoup, though not through their own fault. They’re the wrong age at the wrong time. It’s cold comfort, but better than suggesting that if you just dye your hair, you’ll get that job.”


http://www.nytimes.com/2013/07/27/your-money/unemployed-and-older-and-facing-a-jobless-future.html?pagewanted=all&_r=0

What Mark Carney should be telling you about your career plans


By Neil Patrick

Unless you are particularly interested in the financial markets or economics (as I am) you probably didn’t pay too much attention to the news that the Mervyn King shaped hole at the head of the Bank of England had been filled (partially at least) by Canadian Mark Carney.

Mr Carney has a very good record we are told, having steered Canada’s economy skilfully around the economic crisis that swamped the US, UK and the Eurozone from 2008 onwards.

He’s wasted no time either in putting his stamp on the way the Bank of England conducts itself, and the first of his measures is the announcement that from now on the Bank will issue what he calls ‘forward guidance’ on its plans for interest rates.

Carney used the same ‘trick’ in Canada. On the face of it, it’s no bad thing; it allows businesses and markets to get a greater level of confidence over the medium term environment and consequently plan better and have fewer short term shocks to cope with. So in principle, I think this is a good thing.

But in practice, right now in this climate, it’s quite another. That’s because he’ll almost certainly be telling us all to expect near-zero interest rates for many years to come.

What he should be saying is that interest rates will have to rise one day, that the government is too deep in debt to keep most of its promises and that as soon as the cheap debt disappears i.e. as soon as any sort of economic recovery starts to happen, real wages will not rise for years.

So was Mr Carney really the saviour of Canada whilst the rest of the west fell into recession? The Bank of Canada first used the forward guidance idea in 2009. Carney slashed interest rates promptly but also pledged to Canadians that this low rate environment would remain in place for a long time to come.

The policy was credited with helping Canada steer its way around the recession and paved the way both for the creation of Carney’s reputation as one of the world’s cleverest central bankers and ultimately him getting the transfer deal from Ottawa to London.

But I suspect that the true value of Mr Carney’s measures have been massively over-hyped. The reality I think was that Canada’s salvation was as much due to the innate conservatism of its banks, high commodity prices and the fact that Canadians carried on happily spending and borrowing, as it was by anything that the central bank said.

To put it another way, are we really sure we are comparing apples with apples here?

So whilst I think this question remains open to debate, I am quite definite that this forward guidance obscures the emergence of a really dangerous situation for most working professionals.

Let’s not forget that 0.5% interest rates are an aberration. They have not been this low for the last 300 years. At some point in the future they MUST rise again. So if you’ve become used to paying your mortgage or business loan or whatever at today's rates, try doubling or trebling that monthly cost and ask yourself how comfortable you’d be in that situation?

If the answer is 'not very', you need to start doing something about it right now.

Next, let’s not forget either that the Bank England does not control the prices that you pay for the financial products and services you buy. UK banks have had a hard time as we all know, and whilst you may smugly argue that they got what they deserved, the fact remains that they will be using every trick they can muster in the coming years to generate profits again. The demise of free banking is already on the horizon and you can fully expect that as central bank base rates rise, customer prices will rise at least as fast and probably faster.

The next point is that as we all know, the UK government is in a state of near cataclysmic debt. It has the biggest deficit of any country in the developed world and simply cannot expect to continue without huge future reductions in spending. And as you’ve probably guessed, this means you can expect to see the costs of pensions, education and healthcare increasingly passed on directly or indirectly to you.

Last but not least, the growth of the last two decades in the UK was based mainly upon debt and house price growth which meant almost everyone felt they were getting richer. We weren’t, it was an illusion and only the ongoing supply shortage and of course the latest government house buying subsidy madness is keeping house prices from collapsing to their true value.

Only one thing really creates real wealth growth and that is rising productivity, and whilst some recent reports point out that this has increased slightly in recent months, it’s a far cry from being any sort of major turnaround. So, without the artificial stimulus of rising debt, real wages are unlikely to rise any time soon and may even continue to fall.

Couple this with the outlook for living costs I’ve outlined above and you can see that if you want to see any sort of improvement in your standard of living, or even just maintaining the one you have now, you’ll need to have a plan to earn a great deal more money over the coming years.

Of course no-one in the government or the Bank of England wants to highlight these points – after all who wants to hear this sort of truth? The reality for most of us is that we will have to work harder, save more and spend less. That’s the sort of forward guidance that Mark Carney ought to be giving us.

What I know now – 9 lessons from my life


By Jim Langendorf

My last post was about my realization that my life was at half time and that I now knew the things I wish I'd have known when I was 23.

Upon further reflection, I thought a list of those lessons would be helpful.

I have nothing to fear if I am not liked. The most important lesson, which is applicable to business and professional life alike is that I am worthy of respect, if not affection. I don't like everyone and they are as unharmed by my lack of affection for them as I am of theirs for me. 

Time is fleeting but patience is rewarded. One must act with conviction, but be prepared to wait for results. It is often not clear what the consequences of our actions will be, but if you believe you are right, then you should act.

Consistency and diligence beat flashes of brilliance. Some of the brightest students in law school were unable to pass the bar exam. They could bring it to an essay exam for a class, and get As, but they could not maintain their focus and concentration at the big moments in July and February. Better to be regularly competent than only infrequently extraordinary. (See, Thomas Edison).

The front line of any organization is what gets work done. If you want to assure failure and rejection, then treat the waitresses, clerks, cashiers and janitors with disdain and disrespect. Almost everyone has to start somewhere. Some people start and stay lower on the "ladder." But they are mothers, fathers, husbands and wives, brothers and sisters. They are important in their own way in their own world. Almost everyone is doing the best that they can. Understand and respect them and thank them for their efforts.

Tip generously when it's deserved. Tip generously in advance to guarantee great service.

Show up and act like you belong where you are. If you believe, then other people are inclined to believe it too. If you believe that you can do anything and be anywhere you want, then you can be. It may be that simple.

There is a virtually infinite amount of money circulating the planet. You can have as much as you want, but you have to make an effort to get it. It will not automatically flow to you. Trillions are flowing all of the time. You only need a small part of that flow to be wildly rich. If I knew exactly how to do it, then I'd be rich too. I'm still working on the mechanics.

Go big. You can spend an hour digging a ditch, or selling industrial supplies, or learning how to finance a rental property with no money down. The hour digging a ditch pays quickly but only a little bit. The closed sale, or the refinanced rental may take a little longer to actually happen, but the payoff is far greater. Put your time into high return efforts and act on them, consistently.

Be courageous. Ask yourself what is the worst that can happen? Or remind yourself of the worst thing facing you a month, or six months, or even a year ago and recognize that you made it. It passed. Be bold. It pays off.

On that note, I am off to work. I have to litigate, settle and ideate for a while. Check out my website, http://www.langendorflaw.com/


Jim Langendorf is a law firm operator and an entrepreneur who spends much of his time in federal court recovering unpaid overtime wages for his clients. When he isn't practicing law, he is on a mission to self-improvement, wealth and health. He is always looking for opportunities where everyone wins.

Jim authors two blogs, Rashinal Thoughts http://rashinality.blogspot.com/and the more legal industry focused Donning and Doffing, http:// http://donanddoff.blogspot.com/ He welcomes new followers to both.