http://personalmoneystore.com/moneyblog/2009/01/20/underemployment-vs-unemployment-by-your-payday-loan-source/ Unemployment doesnt tell the whole story
Many people who get laid off from high-paid professional positions are seeking work in the food service industry.
Many people who get laid off from high-paid professional positions are seeking work in the food service industry.
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Its common knowledge that the unemployment rate has hit a 26-year high of 7.2 percent. Most people also know that the average unemployment rate is about 4 percent. But did you know that number only includes people who are actively looking for jobs?
The unemployment rate is a way of measuring the number of employable people who do not have jobs and want them. While this is a pretty good indicator of whether employers are hiring, it doesnt really tell the story about what is going on in the job market.
Barely employed
The unemployment doesnt tell stories about the fates of professionals who worked in the investment industry, were laid off and took part-time jobs waiting tables or tending bar. I wrote a post last week about the high number of people who are taking lower paying jobs after being laid off.
I covered the phenomenon of former six-figure salary earners taking jobs that paid hourly rates, single-income families with several children and people getting creative in their job-searching tactics. I came across a story today with several more examplesof highly paid professionals turning to the food service industry for income. So, PhDs and business professionals with years of experience waiting tables, where do high school graduates, college students and other workers with limited qualifications turn for work?
Another side to trickle-down economics
The theory goes that in a capitalist economy wealth trickles down. Well it turns out, so does poverty in a way. There are only a certain amount of jobs available at restaurants and fast-food joints. When those jobs start going to people with college degrees, there are fewer available for everyone else.
Another side effect is that employers can save money by only employing people part-time because they dont have to pay for benefits. So people that would normally have a full-time job end up working only part-time in a weak economy. Going from working full-time to working part-time often results in needing a payday loan as people adjust to their new financial situation. For more on this article please visit... http://personalmoneystore.com/moneyblog/2009/01/20/underemployment-vs-unemployment-by-your-payday-loan-source/
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