The Up Side of a Down Economy: Making the Best of a Bad Situation and Finding a Job in a Tough Labor

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The Up Side of a Down Economy Making the Best of
a Bad Situation and Finding a Job in a Tough
Labor Market

• Amy Glasmeier
• Professor Department of Geography
• and
• Director Center on Energy, Environment and
  Community Well-being

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Bad News Is All Around Us

• Unemployment is 6.1 percent, up from 5 a year ago
• Wages are flat .7 increase in previous period
• Real earnings are flat .2 percent increase in
  previous period
• Productivity up (due to layoffs)

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Americans save less and earn lower minimum wage

• Today, Americans save less and earn a lower
  minimum wage in real, or inflation-adjusted,
  terms than at nearly any other time since 1950.
  It is at zero.
• Since 1980, real income has declined -3.4
• Real home prices increased 12.3 since the low of
  1991
• Recent job growth .8 is the lowest since 1991
• Share of all income received by the bottom 99 as
  a percent of all income is 77.18 in 1978 the
  figure was 91.05. People at the bottom receiving
  less of total income.

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HOW DO PEOPLE FEEL RIGHT NOW? DOWN
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IN TOUGH TIMES, IT IS EASY TO BEAT UP ON YOURSELF
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CONSIDER YOURSELF ONE OF THE LUCKY 27 PERCENT
http//en.wikipedia.org/wiki/Educational_attainmen
t_in_the_United_States
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JUST A LITTLE LESS THAN A DECADE AGO
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THE FUTURE WAS EVIDENT IN THIS GRAPH
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THINGS ARE CHANGING IN TOUGH TIMES, IMPORTANT TO
KEEP YOUR EYE ON WHAT IS GOING ON
This graph shows the median household income in
2003 dollars according to educational
attainment.8
This Table Shows Real Median Income Over Time
notice gap between HS and College Stagnant
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REAL WAGE CHANGES ARE FLATTENING
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MOST OF US ARE IN THE SAME BOAT
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GENDER MATTERS
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PRODUCTIVITY RISES BECAUSE A) MORE CAPITAL PER
WORKER OR B) FEWER JOBS WE ARE IN B TERRITORY NOW
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Reality isnt very pretty right nowWhat should
you do?
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TO BE FORWARNED IS TO BE FOREARMED

• Take control of the situation
• Do not sit on the pity pot
• Accept reality and work with it
• Get a grip and hold on

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Be Real Your Mental State

• College has been affirming
• You have been told all your life you are great,
  do great, can do great, and will do great
• Instant gratification
• No wants or needs
• No tough times so far up until now

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Look at the Options
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More EducationInvest in Yourself

• For someone earning the national median household
  income of 42,000, an extra year of training
  could provide an additional 4,200 a year. Over
  the span of a career, that could easily add up to
  30,000 or 40,000 of present value. If the
  year's education costs less than that, there is a
  net gain.

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Dont think graduate school is the only choice

• Today, more Americans attend college than ever
  before, but the rest of the world is catching up.
  The once-large educational gap between the United
  States and other countries is closing - making it
  increasingly important to understand what
  education is really worth to a nation.
• Plus it costs money

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Take the PlungeLook for a Job
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In a Nutshell

• Job searches will take longer
• More contacts will be required
• More waiting will be involved
• More organization is needed
• Persistence will pay off
• Intervening opportunities must be created
• IDLENESS IS NOT ACCEPTABLE OR HEALTHY

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One Job Search in Process the five percent rule

• Of 76 openings in his field,
• Ive applied to over 40 jobs and heard from
  about six people, with two interviews, he said.
  He says he has sought out every possible contact,
  and does not think that he is being unrealistic
  in his search.
• Set your goals to be realistic
• I would like a job slightly above what I have,
  or if I have to move laterally, I want some
  modest opportunity for advancement.

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Job Search Strategies

• Searching online is great, but nothing beats
  face-to-face contacts.
• That said
• Set up a web program that links to job sites and
  keep track of when and how you apply for the
  jobs.

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The Job Search Itself

• In good times the cycle takes six months
• Letters compiled and go out
• Two week wait for call back
• Call back one week
• If positive, one week set up for interview
• If not, move on to the next opportunity
• VIEW CONTACTS AS OPPORTUNITIES

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During the Cycle

• Do not sit idle
• Get a part time jobyou must demonstrate gainful
  employment and a willing need to work
• Volunteeruse your education in support of others
• Use your networks
• Develop more skills
• Be realistic

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DEVELOPMENT MORE SKILLS

• Things you didnt learn at the four year
  institution
• Additions to what you learned that builds depth
• Practice what you learned, even simple things
  like writing and spreadsheets
• Develop new capabilities

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Your Personal Space

• Remember the economic crisis is hardest on your
  parents
• Help around the house
• Dont ask or expect someone to take care of you
  you have just had a four year expense free
  vacation
• The time for payback is now
• You might even contribute by putting gas in the
  car, using earnings for gifts to your family
• Dont move home and think you are still in
  college

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THIS IS WHAT YOUR PARENTS ARE THINKING ABOUT