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Laid-off workers growing desperate
Bergen Record ^ | December 7, 2002 | By KATHLEEN LYNN, CHARLES AUSTIN, AND ALLISON PRIES

Posted on 12/07/2002 4:41:36 AM PST by sarcasm

Unemployed for two years, David Gray of Kearny grabbed the chance to earn $16 an hour shoveling snow at Giants Stadium on Friday.

"I'm a solid Republican," said Gray, a former telephone technician whose unemployment benefits have run out. "President Bush? Well, I love him to death, but he's got to do something domestically. I need a job."

At Gray's side was James McGovern, a friend from Kearny and another exile from the battered telecom industry. "I figured I could get some money for the holidays," said McGovern.

McGovern was laid off from his job building cellphone tower foundations in February. He hasn't been able to find work since.

"I'll take anything as long as I'm making more than $13 an hour," he said.

He has applied for jobs installing telephone systems and doing roofing, with no luck. Today he'll take the test to become a Hudson County firefighter.

"I was thinking about becoming a fireman, and since opportunity is knocking, I'm unemployed, I'll take the test and see if I can get in," McGovern said.

The percentage of Americans who are unemployed jumped last month, from 5.7 percent to 6 percent, the U.S. Labor Department reported Friday. The November rate, a seven-month high, is a sign that the economy's recovery remains lukewarm. Economists had expected a smaller rise.

"These are disappointing numbers," said Joseph Seneca, a Rutgers economist who is head of the state Council of Economic Advisors. "We're not going backward, but we're not going forward much either."

U.S. companies cut 40,000 jobs in November, the most since nine months ago, when 165,000 jobs were cut. Economists had forecast modest job growth for last month.

"It's a reflection of caution on the part of businesses," said Martin Mauro, manager of financial economics at Merrill Lynch. "They're still not confident that sales are improving enough to hire people."

New Jersey's unemployment numbers for November will not be available until Dec. 17, but in October, the state's rate was 5.5 percent. Like the national rate, New Jersey unemployment has risen in the past year, but it has consistently been lower than the national rate for most of the last three years.

"There are just people out here stuck, very much stuck" in unemployment, said Marlena Lechner, director of vocational services for Jewish Family Services in Teaneck.

"Employers have the upper hand, and they're being very, very choosy. People who are not in their 20s, who don't have that fresh, young look, get pushed down in the pile," Lechner said.

"The kind of talent I'm seeing out there today, I'm boggled that they're not finding jobs. Good résumés, good backgrounds, yet they're not being seen."

Two weeks ago, David Toung of Jersey City lost his job as a Wall Street analyst specializing in telecommunications, a deeply troubled industry. He had been in the job for two years, in the field for six years.

"I don't think I was too shocked," Toung said. "It's been a very difficult sector, and a lot of my colleagues at other firms lost their jobs."

He's been making calls every day, looking for work. He hopes to stay in the same industry.

"You take your skills and look for the next opportunity," he said.

The 200 men cleaning up Giants Stadium for today's Army-Navy game represented the spectrum of the state's unemployed.

Dave Gustafson of Basking Ridge, for example, is just completing his first week without a job. Working in telecommunications security and Web page design, Gustafson lost his regular paycheck Tuesday. It's his first time among the unemployed, and he's thinking of heading back to school.

That's not an option for James Battle, a construction worker from Newark. He's a single parent with three children.

"But I'll do anything," he said, "really anything, because I've got three little girls to support."

Gerald Santiago of Woodridge, who once worked for a courier service, has struggled through a series of low-paying jobs. The courier service, Santiago said, was dependent upon clients hurt by the attacks on the World Trade Center.

"There are some jobs out there," he said, "but they don't pay enough."

Jay Goldberg, a lanky elevator installer from Westchester, rested on his shovel and explained that he had been out of work for three months.

"I've been taking short-term painting jobs, just anything I can get," he said.

For Sam Rizzo of Kearny, the Giants Stadium job "gets me through another day." A construction worker and landscaper, Rizzo said, "When I heard about this gig, I shot right down here."

Devon Jones of Lodi, an unemployed construction worker, has tried to find jobs through temporary agencies.

"But you sit there for hours and get nothing," he said.

Dorothy Boston, a staffing consultant at JSP Associates in Hasbrouck Heights, said she hasn't seen people this desperate in her 30 years working in human resources.

"The résumés we see coming in are for jobs that people are not even qualified for," Boston said. "They're not even in the ballpark. They just want to work."

For example, a recent applicant for a sales job in the auto industry had no sales experience, as required, but "said that he loves cars, so he knows he could do a good job," Boston said.

"Now companies are looking for people with five specific skills, and they want all five," said Shawn Mulligan, district vice president for Robert Half International Inc., a California-based staffing company with four New Jersey offices. "Three years ago, they might have hired someone with three of those skills."

Employers may be reluctant to hire in part because of uncertainty over whether the U.S. will go to war with Iraq, said Carl Van Horn, director of the John J. Heldrich Center for Workforce Development at Rutgers. Among other issues, a war could increase the price of oil, driving up companies' costs.

As a result, Van Horn said, managers are delaying decisions on questions such as, "Should I buy another piece of equipment or bring in another 10 or 100 workers?"

The unemployment rate is generally considered a lagging indicator - telling the economy's current or recent state, rather than where it's headed. That's because employers often wait till after sales have improved to hire more workers, said Van Horn.

But higher unemployment is also a troubling omen for the future, because it may slow consumer spending, which accounts for about two-thirds of the economy, Mauro, the Merrill Lynch manager, said.

"If you don't have income to spend or you're worried about losing your job, you're going to be reluctant to make big commitments," he said.


TOPICS: News/Current Events
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To: ItisaReligionofPeace
I'm adapting very well to the new economy, I've been in manufacturing for 25 years. I am now getting into more and more consulting. Making stuff used to be more fun.
81 posted on 12/07/2002 2:08:31 PM PST by marbren
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To: Nuke'm Glowing
I agree with you and perhaps I'm a bit too callous.

I was laid off circa '94, went for a year without any offers, found out about an extramarital affair that had been ongoing for several years and ended up over $25K in debt, none of my own accounting but by fraud by others.

Slept in a truck for 3-6months between labor jobs out of state, then picked back up with active duty.

The more I look back on things, all things fit into God's plan. More pertinent than the hourly wage or environment is one's steady relationship with God. Even in bearing one's burdens, if the hoest, honorable effort is provided, he will provide. One might not live bodily very well, but for every righteous suffering there is a blessing in time.

82 posted on 12/07/2002 2:15:51 PM PST by Cvengr
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To: Cvengr
The future holds 1000 years of bliss. Jesus will rule. This is what it means when we pray "Thy kingdom come, thy will be done on earth as it is in heaven"
83 posted on 12/07/2002 2:23:59 PM PST by marbren
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To: another cricket
I am working for $11 an hour right now, and busting my ass. I have no sympathy for someone who says they won't take anything for less than $13. Step aside and let me do the work! When the market turns up and jobs are paying more, who are they going to give the job to, me or the guy with the sign saying "Won't work for less than $13"?
84 posted on 12/07/2002 2:29:49 PM PST by ReveBM
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To: marbren
The idea of 35 to 40 years of service, (job security), is also gone. I know a really brilliant senior engineer, about 55 years old, lost his $100,000 per year job a year ago no chance of employment. (PS wouldn't a spell checker in free republic be neat?)
85 posted on 12/07/2002 2:36:48 PM PST by marbren
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To: marbren
They can hire two $50,000 college grads, who don't know anything, to do the job. After about 10 years they can be dumped.
86 posted on 12/07/2002 2:39:31 PM PST by marbren
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To: sarcasm
bump
87 posted on 12/07/2002 2:39:52 PM PST by VOA
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To: marbren
A lot of seasoned professionals seem to become teachers.
88 posted on 12/07/2002 2:40:56 PM PST by marbren
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To: marbren
Not too many in the inner city.
89 posted on 12/07/2002 2:43:25 PM PST by marbren
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To: marbren
If no one pays for software, no one will write it.

So? It's only a foreigner that took an American's job anyhow. We're supposed to be about getting the cheapest possible. If industry should go for the cheapest labor wherever they can get it, why shouldn't the consumer do the same?

90 posted on 12/07/2002 2:47:00 PM PST by FITZ
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To: FITZ
You can buy stolen software if you want.
91 posted on 12/07/2002 2:51:32 PM PST by marbren
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To: ReveBM
I am working for $11 an hour right now, and busting my ass.

People were making that much 20 years ago when cars and homes were much much cheaper. Also taxes were far lower. If I was making $11 an hour, I could not afford to live in my very average house and pay the property taxes I have to pay here. I'd also qualify very easily for food stamps and the earned income tax because I have kids. It amazes me that people think $11 an hour is really good wages because 20 years ago that wasn't considered great.

92 posted on 12/07/2002 2:52:20 PM PST by FITZ
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To: marbren
If the government shouldn't protect American's wages, then why is it protecting corporation's profits? Free trade should be free ---get all government controls out. Let the CD manufacturers compete with those who can get me a CD with the same quality for $3 versus $15. Same goes for software, just get the government out completely because the same arguments should hold if a corporation can find the cheapest labor even if it's in a communist country or is child or slave labor.
93 posted on 12/07/2002 2:55:15 PM PST by FITZ
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To: FITZ
Bill Gates wouldn't like it
94 posted on 12/07/2002 2:57:13 PM PST by marbren
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To: FITZ
Winona Ryder shouldn't be guilty of shop lifting?
95 posted on 12/07/2002 3:00:12 PM PST by marbren
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To: FITZ
I live in an area that was promised great and wonderful things from NAFTA and instead was declared an economic disaster area (so we get millions of federal dollars now) soon after NAFTA went into effect and things just keep getting worse. Some of those former garment workers used to make $8 an hour ---not alot but it let them be middle class.

the last couple of articles i read about the border town factories indicated a substantial portion of them were closing up shop and heading over to china. because, you know, paying mexicans 2 dollars an hour is just too expensive.

96 posted on 12/07/2002 3:12:06 PM PST by danelectro
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To: FITZ
We should eliminate the minimum wage so people can work for $2.00 an hour.

Is it low enough to compete with Chinese?

97 posted on 12/07/2002 3:13:15 PM PST by A. Pole
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To: laredo44
We all have to do what we have to do in this new economy to survive. The majority of the present middle class in the USA do not have the tools to compete. How long can they stay middle class.
98 posted on 12/07/2002 3:13:33 PM PST by marbren
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To: A. Pole
No they are slaves
99 posted on 12/07/2002 3:14:21 PM PST by marbren
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To: FITZ
You know, you're right. I made $12+ delivering pizza in my teens twenty years ago.
100 posted on 12/07/2002 3:15:57 PM PST by txhurl
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