Posts Tagged ‘economy’

By Dave DeWitte
The Gazette

Photo illustration by Jupiter Images

Iowans who seemed to be in some of the safest jobs before the recession are now facing some of the longest waits in limbo to find new employment.

Veteran workers who once held midlevel and management jobs constitute what some are calling “the new unemployed.” They are older, more experienced and better educated than the typical unemployed of the past.

“We are seeing people with more tenure in the workplace and a higher average age,” said Kim Johnson, executive director of continuing education at Kirkwood Community College, which provides services to job seekers.

The March unemployment rate for Americans 55 and older was 6.2 percent, according to the Bureau of Labor Statistics. That was lower than any other age group, but the highest it has been in more than two decades. It also had climbed the fastest of any age group in the past year — 89.2 percent.

Veteran workers are less likely to be laid off in an economic downturn, but they also are likely to suffer the worst if they are laid off, said Peter Orazem, Iowa State University professor of labor economics.

Orazem said employees who’ve worked for the same company for a long time acquire skills specific to that company that make them more valuable to their own employers but not necessarily other ones.

“Your value to that firm is rising more rapidly than your value to anyone else,” Orazem said. “As a result, when you are laid off, it not only takes you longer to find another job, but you also get the largest reduction in pay.”

The academic term for this is “firm-specific human capital.”

At the end of 2008, 32 percent of job seekers 55 and older had been unemployed for at least 27 weeks, compared with only 23 percent of those age 25 to 53 and 18 percent of those younger than 25.

The Gazette interviewed six workplace veterans hunting for new jobs to learn about their frustrations, challenges and inspirations in a tough job market. These are their stories. 

Ed Saunders

Joy Nicholson

Eric Wolfe

Ed Wischmeyer

Phil Sutton

Rick Springsteen

© Gazette Communications 2009

By Dave DeWitte
The Gazette

Rick Springsteen, 46, of Lisbon, is one of 257 Sealed Air Cryovac employees who found out at the end of 2008 that the company plans to close its Cedar Rapids packaging material plant in October.

Unemployed veteran worker Rick Springsteen has worked at Sealed Air Cryovac for 23 years. The company has begun a phased shutdown of its Cedar Rapids operation. Photo by Jim Slosiarek.

The news came during a vacation week; a friend called to give him the news. Even though the plant is profitable and has an enviable safety record, Springsteen wasn’t surprised.

“It’s hard to be surprised at anything these days,” said Springsteen, whose job ends in July. “We’re their last union factory. A lot of this stuff is going to Mexico.”

Springsteen has worked at the plant since he left the U.S. Air Force with an honorable discharge as a sergeant almost 24 years ago. He had risen from material handler to a lead person overseeing the plant’s SAP inventory control system. It had been a good ride, he said, a union job with good money and benefits.

The closing decision struck Springsteen as a clear case of placing profits over people. He wishes CEOs could be required to spend time in unemployment offices and job-search clinics so they could understand how their decisions affect lives.

“Watching them close all these factories, it’s like watching an autopsy,” Springsteen said. “Piece by piece, one by one, you’re watching something that used to be so strong be disassembled.”

Since the closing announcement, the father of three has divided his time between Sealed Air Cryovac and his job search. Springsteen worries that his lack of a college degree will hurt him in today’s competitive job environment.
“They look at the education before they look at the work ethic,” Springsteen said.

One advantage for Springsteen is Trade Adjustment Act assistance from the federal government. He’s eligible because the work is going to another country. That assistance should allow Springsteen to receive unemployment benefits until he finishes an approved college degree if necessary.

© Gazette Communications 2009

By Dave DeWitte
The Gazette

Eric Wolfe had been in the Cedar Rapids directory publishing business that became part of Yellowbook since 1986, the year he graduated from Coe College.

Eric Wolfe was laid off from Yellow Book after 22 years. Photo by Liz Martin.

On Nov. 6, Wolfe and about 25 colleagues were told that their positions would be eliminated to reduce costs. The company was laying off nearly 100 employees in Cedar Rapids.

The job that paid $16.35 an hour with full benefits was gone, leaving Wolfe with six months of severance pay.

“I’ve taken it rather personally, especially when it first happened,” said Wolfe, 47, of Marion.

Through conversations with his father and uncles who’ve endured layoffs, Wolfe eventually accepted that it’s not a reflection on his abilities. He had always gotten good reviews and was so focused on his job that co-workers sometimes thought he was ignoring them.

The layoff was a real shock, Wolfe said. His wife had just gone through back surgery and was scheduled for another. He applied the day of the layoff for unemployment benefits and — just to be careful — food stamps. He received the unemployment but not the food stamps.

Wolfe has cut spending and invested as much as he can from his severance checks.

Over the holidays Wolfe took a retail job at SuperTarget, working checkout and stocking shelves. After that monthlong stint, Wolfe found part-time, minimum-wage employment selling cellular phone service at a kiosk in Sam’s Club.

© Gazette Communications 2009

By Meredith Hines-Dochterman
The Gazette

Talk to your kids about money and the economy/Stock photo by JupiterImages

The economy. Everyone is talking about it. At work. In the grocery store. At home.

Sort of.

Parents tend to avoid issues that could upset their offspring. Money is regarded as one of those “for adults only” topics, leaving kids in the dark as their parents wrestle to make ends meet. What parents don’t understand is they might be doing more harm than good.

“When parents worry, their kids worry,” said Amy Jackson, team leader for children’s services at the Abbe Center for Community Health in Cedar Rapids. “Children do listen to what adults say about the topic.”

For that reason, experts say it’s best to include children in discussions about money.

“It’s always smart to be honest with children — in accordance to their age,” said Kathleen Staley, assistant director/director of program and consultation services with the University of Iowa Counseling Service.

This doesn’t mean providing a blow-by-blow of bills and tax statements, but explaining to children that times are tough and, until times get better, there will be some changes.

“What experts suggest is one minute per grade level to explain it to them,” Jackson said.

Kathi Moss, financial wellness coordinator for Horizons, suggests families track spending, prioritize goals and make cuts where necessary. This process should include children. “It’s the only way they’ll buy into it,” Moss said.

It’s typical for young children to think money grows on trees or in ATMs. If they don’t understand why Mom and Dad can’t afford the Friday night tradition of pizza and a movie, they’ll continue to ask for it.

“Explain that there isn’t a lot of money for the extras,” Moss said. “At the same time, make sure not every extra gets cut, because then no one is happy.”

Still, talking and planning won’t make everything better. Some children will worry. They’ll require more reassurance from their parents that they’ll be OK. They’ll want to do something to help. They’ll want to talk more about the situation. All reactions are normal.

“Talk to your children as much as they need,” Staley said. “Make them part of the family unit that will come together and face tough times together.”

Jackson said if parents focus on the positives — they have a home, they have food — their kids will, too. If a child can’t stop worrying, contact their doctor or mental health professional.

“Adults need to make sure they build up their own support system,” Jackson said. “We focus on kids all the time, but adults need to have people they can lean on, too.”

Free fun

Ready to upgrade family entertainment options without breaking the bank? Here are a few money-saving ideas to get you started:

• Your local library is a one-stop shop for all kinds of entertainment, including books, movies and music. Keep an eye out on upcoming activities, including story times, movie events and special activities.
• Make game night a regular event. Choose a board game, pop some popcorn and enjoy time as a family. Trade games with friends, or set up a multifamily game night, to increase the fun.
• Explore the great outdoors. Call your local parks and recreation department for information about hiking and bike trails in the area.
• Visit the Iowa Cultural Corridor Alliance at http://www.culturalcorridor.org/for more free culture events in the area. 

© Gazette Communications 2009

By Molly Rossiter
The Gazette

The small group assembled in the library at New Covenant Bible Church in Cedar Rapids was diverse: men and women, doctorates and undergraduates, young adults and older workers.

The one thing the 12 people shared, however, was what brought them to the church to begin with. Each had lost a job within the last six months.

The group, Seeking Jobs, Seeking Him, meets every Monday at 9 a.m. for spiritual support and encouragement. Members share tips, ideas and experiences they’ve had in their job searches.

Ed Wischmeyer (second from left) laughs during a light moment during a discussion about building resumes at a Seeking Jobs, Seeking Him support group meeting at New Covenant Bible Church March 2009 in northeast Cedar Rapids. With Wischmeyer is Dave Olsen (left), Mechelle Carter (second from right) and Jennie Espy (right). Photo by Jim Slosiarek.

It’s a movement many churches and faith groups are starting. The recession and increasing number of unemployed workers have produced a new group of those who are hurting, said the Rev. Gayle Wilcox, associate pastor of Lovely Lane United Methodist Church, 2424 42nd St. NE, Cedar Rapids. At Lovely Lane, three women make up the RU – Recently Unemployed – group that meets at 9:30 a.m. Fridays.

“We start by reminding them that this is a hurt like other hurts,” said Wilcox, 53. “Like someone who is going through a breakup or many other kinds of loss, the loss of a job is definitely an injury.”

The Rev. Tye Male, small-groups pastor at New Covenant, 1800 46th St. NE, leads the Seeking Jobs, Seeking Him group there each week but is quick to defer ownership to the participants.

“This is your group. This is your time to interact, to share your stories,” he said at the start of a recent meeting.
The groups offer participants an opportunity to share openly among people who are going through the same thing.

Unemployment isn’t always something that is easily discussed, Wilcox said.

“What I learn from the women is that this is personal and this is a self-esteem issue, so it is very hard for them to share,” she said. “It’s kind of a grief; it’s a kind of loss. They’ve lost a part of their identity.

“Our identity is more than what we do. It’s who we are.”

Both groups initially offered core support to those who have lost their jobs. Within days, however, each received unexpected support from job coaches and human resource personnel who meet with the members and offer resume and interviewing advice and other tips.

It seems to work, Male said.

Dave Olsen (right), Brett Mason (center) and Tye Male (left) bow their heads in prayer as they ask for good news and information on a dependable car for a fellow support group member during a Seeking Jobs, Seeking Him support group meeting at New Covenant Bible Church in March 2009 in northeast Cedar Rapids. Photo by Jim Slosiarek.

The New Covenant group “lost” a member during its second meeting when he announced he had gotten a job. Monday, at the third meeting, the group of 12 was reduced by one when Carol Montag announced that she, too, had gotten a job offer.

Her place was filled quickly, however, when 30 minutes later the door opened and a man who had just learned he was laid off walked in.

“That’s why we’re here. That’s who we need to be here for,” Male said after the meeting. “They need each other. They support each other.”

The groups are about more than job-seeking assistance.

“I’ve done a lot of job hunting in my time,” said Ed Wischmeyer, a former Rockwell Collins employee who also helps with resume and interview tips at the New Covenant group.

“I’m not in it for the interviewing skills. I’m in it for the community.”

© Gazette Communications 2009