FOR THE UNITED STATES
Is it wrong for me to quickly mention how pretty this graph is?
I know it’s dealing with unemployment (boo!), but they did a great job.
Via Flowing Data
AS FOR CANADIAN DATA
This just released on The Globe & Mail: Long-term joblessness on the rise (they also have a neat interactive graph there to click on).
Some choice bits from the article:
Canada has won back all the jobs lost during the economic meltdown, but for the country’s 1.5 million unemployed the recession’s shadow lingers.
The duration of unemployment is now running at a 10-year high. The number of workers who have been jobless for at least 12 months has swelled by a third in the past year.
Two short years ago, David Dickson was a director of finance at PepsiCo Inc., where he earned about $180,000 a year.
He lived well, drove a BMW and took his three kids to hotels each month, eating out every week.
Then the recession hit. Not only did the 41-year-old lose his job, he also lost nearly a quarter of a million dollars in investments. Home renovation costs forced him to cash in $40,000 in retirement savings, and he ran up $60,000 in debts to survive. His health suffered – insomnia and anxiety forced him to seek therapy.
A year and a half of unemployment eventually forced him to use a food bank.
He has since found a job, after offering to work the first three months for free, though a pay cut and lingering debts means he “may never recuperate.”
Emergency fund savings & living below your means even in times of super high income? Two very important things, folks.
I feel bad for the Dicksons.
I know you might be thinking: How can you feel bad for them, FB!? They were earning $180,000 and they didn’t save a penny!
Yeah I know. They only lived in the short-term, didn’t save enough and clearly didn’t exercise any frugality with their lifestyle, but it’s still a sad situation to be in, regardless of how much they were making before.
It is stories like this that makes me so grateful for what I have and what has been given to me. It also makes me want to stay buckled down on my expenses, and to keep myself in check, with a few indulgences here and there.
As of September, 300,000 of Canada’s 1.5 million jobless workers have now been out of a job for 27 weeks or longer – a proportion that’s doubled from prerecession levels.
The number of people who have been out of work for 53 weeks or more has jumped by more than a third to 101,700 from last September. Nearly two-thirds of them are men, with the majority in the 25- to 54-year-old age category.
Ontario, Quebec and British Columbia have the greatest number of people who have been out of the work force for more than a year, StatsCan’s figures show.
The average number of weeks of unemployment rose to a decade high of 21.4 weeks in September, from 18.4 weeks a year earlier. The spell is longest for men and women over 55, who tend to experience 35 weeks of unemployment. The duration is longest in Quebec.
I can’t say I’m surprised.
Still, it makes me wonder how many people are out of a job because they won’t take something ‘below’ their skill set, or if they really can’t find anything to help stop the bleeding from their bank accounts.
I feel awful for these elderly workers the most. I hate that their experience is going to waste, and they are so close to retirement.
Just the other day, I heard that a man who was about to retire this year ended up dying unexpectedly from a heart attack.
Life really is unpredictable. (Sorry for the doom and gloom!)
And lastly, some notes on our neighbours south of the border:
The situation isn’t as dire as in the U.S., where almost half of jobless workers have been out of work for six months or longer. But it’s a sticky problem that continues to worsen in Canada. And while the issue is much discussed south of the border, it has merited scarcely a mention in Canada.
OH & BEFORE YOU RUN AWAY!
My buddyKevin of Thousandaire.com has entered a contest called the “Spendster Second Chance Video Contest.”
He made a music video about his track shoes. Go here and vote for it.
Also, congratulations to Rachel of It’s a Hero who won this book – Psych yourself rich, I was giving away recently.
I have another giveaway on the go at the moment — it’s for a ring from Etsy. Check out my current posts on my main page.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
Its actually the stories of seniors that motivate me to save. Last year I spent every paycheck I made. This year I save 30% of each paycheck after bills are paid. I want to get up to where I save 50% of each paycheck. I live in the midwest so our bills are lower than in other parts of the US,plus I don't buy a lot of things, when we spend we usually spend on money eating out. It takes time to change your habits and I'm working on it.
I don't want to be a broke elderly woman. Even though my bf is the best man I've ever met, I like to have my own savings for my own sanity. I'm not sure about Canada, but in the U.S. there is talk of our social security drying up. I feel that now more than ever, men and women have to be their own backup plans. Sometimes I hear people who are in their early twenties saying they will never retire, and I just shake my head.
I'm only a few years older, I'm 27, but its unrealistic to expect that you will never retire. Life is so uncertain, yes it would be wonderful if we could all do what we love and rake in the money until the day we die but that's not realistic.
First of all most of us don't know how much we have, and even if you do make it to your golden years you could be laid off, fired, etc. I think its important to have fun with money but its also important to save.
I am so happy to hear that you want your own savings for your own sanity. I\’m the same way. I\’m a team with my other half, but I also have to make sure I have my own accounts.
In Canada it\’s the same thing, and I daresay across the world — social security is drying up. I\’ll never rely on my government to give me money, that\’s for sure, unless they have a special system like in Singapore or the UAE where they actually take a portion of your salary to force you to save for retirement so that you are sure you have enough at the end.
Yep I have my own separate bank account from my bf. He's really sweet and very trustworthy, however we do like having separate bank accounts, lol. It works for us. 🙂
That's fascinating. Looks like the coasts have been hardest hit.
I agree with SP – what do you expect to happen to people who still haven't found jobs if UE runs out? I think it's one of those things – like paying for people to have kids, basically – that's a lesser evil. Bitch and moan about subsidising _____, but would you rather kids go hungry and people live on the street and turn to crime?
In NZ we have plenty of benefit lifers or long termers, but I would think most of them are on sickness benefits (including mental) or the DPB (ie single parents staying home with kids).
My recent post October roundup
Good point — I\’d rather not see their kids suffer just because they made bad decisions. This sure is tough… I can see why governments struggle to try and shape our beliefs.
I still think that forcing people to save 5% of their paycheque as a MANDATORY requirement by the government, into a big trust fund that cannot be released, and is money meant for you, is better than some arbitrary number by the time you retire. We should look at other countries who are weathering the storm, see what they\’re doing and adapt or emulate it.
I'm not certain it's that people don't take jobs that are below their skill set/education/experience, but that they can't get hired. I have always struggled in finding jobs and have often been told I'm over qualified. The thought is that while I might be happy to take the job now, I'll leave when something more appropriate comes along and the company will have wasted resources training me. My current contract is ending this week and I have been looking for a new job for 2+ months and have only received one interview (I didn't get the job). Seeing as I do not have much savings I can't not work, so if something doesn't materialize quickly I may have to go to my fall back job of waiting tables. If thats the case, I need a whole new resume and basically lie during interviews to say that I'm not going to leave the second the opportunity arises. The only good thing is serving pays much more then my current contract, and hopefully I'll be able to grow my savings again.
I'm kind of transfixed by that steady lightly colored band down middle America. Curiosity is piqued to what factors have led to them being relatively sheltered from the economic storm…or what else is skewing the data. Thank you for sharing.
My recent post The Other Kind of Creep
Perhaps what weathered the storm is just that it\’s smaller cities. Less jobs, less people, therefore the demand remained steady when you have to have a small team to upkeep a town with food, shelter, water and so on.
Normally, I'd agree with you on the "Still, it makes me wonder how many people are out of a job because they won’t take something ‘below’ their skill set, or if they really can’t find anything to help stop the bleeding from their bank accounts." line.
But right now? Not convinced.
Ottawa has one of the lowest unemployment rates in the country right now. I've been keeping an eye out for potential part-time jobs to supplement my FT one so we can save up faster for a trip we want to do.
The number of potential job postings has really been pitiful. And I'm looking for something part-time, no benefits, and since I have a good FT job, "below me" doesn't bug me at all. I just want some extra cash every week and I'm willing to work for it. There really doesn't seem to be much available right now- even with the seasonal hiring for Xmas.
I\’ve heard that from a colleague who is looking for some jobs right now, but it just seems odd to me that there wouldn\’t be any jobs, seeing as I\’ve been walking around downtown and noting all these \”FOR HIRE\” signs as a waitress or part-time grocery helper.
The pockets of extremely high unemployment you see are often in areas where huge numbers of jobs are supported by industries that were especially hard-hit by the recession. For example, the auto industry and its related industries, which is based in Michigan, were especially hard-hit by the recession. A huge portion of Nevada's job losses came from gaming/hospitality and construction–as people made less or worried more, they stopped their discretionary spending. Also, many of the red areas in inland CA, AZ, and NV were those areas that experienced the fastest population and building booms during the real estate bubble. When the building and home sales stopped, these areas had a huge number of unemployed realtors, mortgage brokers, construction workers, etc.
Great points! That answers Lindy\’s question above.
The discrepancy in unemployment statistics between the US and Canada is very interesting. I don't know much about Canada, so maybe you can provide some insight.
We offer about 2 years of unemployment (normally only about 6 months, but extended because of the recession) where the government pays you as long as you are unemployed. The only requirement to keep getting the money is that you apply for jobs every week or month or something. Does Canada have anything like that, and if so, does yours last 2 YEARS!?!?
I think if unemployment were a lot shorter, people would stop sitting around all day and start finding jobs.
PS. Thanks for the shout out!
It isn't clear to me that there IS a discrepancy, at least from this post. From google, it looks like Canada is right around 8%. A little better, but still high.
I really disagree with this: "if unemployment were a lot shorter, people would stop sitting around all day and start finding jobs. " I have not been unemployed in this recession, but everyone I know who has been, short, long, and medium term, REALLY would rather have a job. Do you really know people who sit around all day? I am surprised it is 2 years though! I guess that is because it varies by state, and I had talked to someone in a state that has 60 weeks.
What struck me was how little things have changed (in the US) over the past year. I honestly thought things were improving, and am saddened to see how slow it is.
My recent post November 2010 Goals
I don't tend to associate with people who would rather be last bums than have a job, but I am certain there are a lot of people out there who would rather collect unemployment than go to work. I also think there should be more requirements to be on unemployment; for example, at least 20 hours of community service a month. While the government is paying you to do nothing, I think you should at least spend some time improving your community.
I'm not trying to sound heartless, losing a job sucks and I wish it didn't happen to anyone, but if it does, I don't think the appropriate response is to let that person sit on their butt for 2 years applying for jobs they aren't qualified to work just to meet requirements and get a paycheck.
My recent post I Found 1-000 seriously
I like your idea of 20 hours of community service or volunteering while looking for a job.
You're acting like unemployment you're a baller on unemployment. It pays like 50% of your wages; e.g. in MI you get a MAX of $362/wk, $1200/month…..max. I'll assume most don't get the max – so $1k. Can you do live on $1k if you have a spouse & kids? In Texas you get between $60 and $415/wk – that's still only $1600/mo. In DC it's $50 to $359/wk.
That said, I'm still down with the community service idea.
I heard from someone recently that very industrialized, dynamic countries tend to have an unemployment rate of around 8% – 10% as THE NORM. It\’s just that people may not be used to it, but that\’s generally what they expect countries to have.
I still think that things are improving, but then again I\’m in an industry that seems to be heating up after that slow down in 2009.
I don’t know what the unemployment benefits are personally, seeing as I’ve never been on it, but here’s what I found: you can apply for it if you qualify, it’s a two-week status to process but it doesn’t say anything about end dates or maximum benefits.
I think that after a certain point, if I recall correctly, you have to prove you are looking for a job and they check up with calls to the prospective employers and so on, to continue on EI benefits.
I don’t know if we have 2 years! But… it might be just that, or longer :S
http://www.servicecanada.gc.ca/eng/ei/application/applying_for_benefits.shtml
(You’re welcome!)