H-1B Ready to Work Conference October 15, 2015 PLENARY SESSION: LONG-TERM UNEMPLOYMENT: WHY IT MATTERS AND WHAT WE CAN DO ABOUT IT Speaker: Maria Heidkamp, Senior Researcher and Director of New Start Career Network at the John J. Heldrich Center for Workforce Development, Rutgers University Special Guest: Christopher P. Lu, Deputy Secretary, U. S. Department of Labor

Long-term Unemployment: Why it Matters and What We Can Do About it Maria Heidkamp Senior Researcher and Director, New Start Career Network John J. Heldrich Center for Workforce Development Rutgers University USDOL Ready to Work Grantee Conference October 15, 2015 Image courtesy of Shutterstock

During the Great Recession, 8 in 10 Americans Experienced Unemployment — Directly or Indirectly 23% were laid off from a full- or part-time job 11% know someone in their immediate household who was laid off, if not laid off themself 23% 11% 26% know someone in their extended family who was laid off, but no one closer 21% do not know anyone who was laid off 26% 21% 13% 5% 13% know a close personal friend who was laid off, but no one closer 5% know a friend of their immediate household who was laid off, but no one closer

Long-term Unemployment During and After the Great Recession in America In the U.S. in late 2015: 2.2 million Americans unemployed for more than 6 months 1 in 4 of all unemployed workers (27%) Still higher than the 26% level reached in 1983 during the nation’s worst previous recession Image courtesy of Shutterstock

While long-term unemployment is down, signs of labor market weakness persist Share of Americans participating in the workforce dropped to 62.4% -- the lowest share since 1977 (when women were less likely to work) Council of Economic Advisors estimates roughly half the decline is due to aging workforce, but many prime age workers (25-54) have left as well. In addition: there are 6 million involuntary part-time workers, 1.9 million marginally attached to the labor force, and 635,000 discouraged workers

Source: Schrager, A. If nearly 40% of Americans aren’t working, what are they doing? Available at: http://qz.com/516023/if-nearly-40-of-americans-arent-working-what-are-they-doing/

Long-term Unemployment During and After the Great Recession in New Jersey More than 125,000 people in New Jersey Over three-quarters unemployed a year or longer Roughly half over 45 years old Image courtesy of Shutterstock

New Jersey was 2nd at 41% Source: BLS Data

Who are the Long-term Unemployed? Affects all: Levels of education Income groups Ages Occupations Industries Images courtesy of Shutterstock

Why are So Many People Unemployed for So Long? CAUSED BY: Worst recession in 70 years; slow recovery Mergers, acquisitions, consolidations, global competition Attitudes and assumptions of employers about the long- term unemployed Age discrimination Outdated job search skills Lack of support and services

Why are So Many People Unemployed for So Long? NOT caused by: Skills shortages Lack of effort by the unemployed Reluctance to accept lower pay Dependence on governmental programs Image courtesy of Shutterstock

The Devastating Impacts: “I just want to get my life back” — Unemployed worker Financial disasters: Diminished earnings, more debt, bankruptcies, and foreclosures Depleted savings, early or delayed retirement Damaged health: Skipping visits to doctors, illness, stress, anxiety, depression, drug and alcohol abuse, suicide Families in crisis Government services: Higher spending on social supports; less revenues Images courtesy of Shutterstock

Mental Health, Unemployment and Job Search Mental health problems found in roughly 16% of the general population, and 34% of the unemployed Mental health problems particularly pronounced for men, blue-collar workers, and the long-term unemployed People who participated in formal job search programs or workshops were 2.67 time more likely to find a job than their peers who didn’t participate Factors central to effective job search: Enhancing self-presentation; improving self-efficacy; learning job search skills; promoting agency and proactivity; accessing relational support; and goal-setting. Must focus on both job search skills development and motivational issues together Source: Sharone, O. , Blustein, D., and Van Horn, C. Long-term Unemployment in the United States. (forthcoming)

The Long-term Unemployed are Not Getting Much Help Government aid other than Unemployment Insurance Help from job coach 9% 13% Attend job club/ networking meeting Job training 4% 10%

Helping New Jersey’s Long-term Unemployed Job Seekers Major funding provided by the Philip and Tammy Murphy Family Foundation, and by New Jersey Resources, the Fund for New Jersey, and the John J. Heldrich Center for Workforce Development at Rutgers University

New Start Career Network Volunteer Career Coaches Information and Advice Older, Long-term Unemployed Job Seeker Employer Engagement Access and Referral to Services

Partners and Collaborators

Welcome to the NSCN Website The goal of the New Start Career Network is to provide older (ages 45+), long-term unemployed New Jersey job seekers with access to free, personalized career services, including web-based information resources and in-person and virtual career coaching.

Get Involved Volunteer as a career coach Hire a long-term unemployed worker Refer a friend or family member to NSCN Maria Heidkamp heidkamp@rutgers.edu Carl Van Horn vanhorn@rutgers.edu www.heldrich.rutgers.edu Image courtesy of Shutterstock