Unemployment Blues: Advice You Can Use

By Suemedha Sood, April 13, 2009

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Lost your job? Here are some tips to get back on the employment track.

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Like many of the other 186,350 American workers who were laid off in February, Alaina Tucker wasn't all that surprised. Up until the last week of February, 25-year-old Tucker was the corporate marketing coordinator for Walker Parking Consultants, a small engineering firm in Boston. "The VP just called me into his office, sat me down and gave it to me straight: Alaina, we are going to have to let you go," Tucker told WireTap. "It's a bit of a shock to hear those words spoken to you, but in all honesty, I wasn't terribly surprised. The company was posting significant losses and there had already been two rounds of layoffs.... It's only so long before marketing gets hit."

Most Americans are forced to face the reality that anyone with a job today could be unemployed tomorrow. "I was bummed about the situation," Tucker says, "but at least I wasn't blindsided, as were some of the other employees who were laid off that day."

Young Workers Hit Hard

Over the past 12 months of economic recession, 5 million new Americans have joined the unemployed, according to the Bureau of Labor Statistics. The situation may very well be disproportionately worse for young workers.

Since the start of the recession, 2.2 million young people between the ages of 16 and 29 have lost their jobs.

The current teenage unemployment rate is over 20 percent -- the highest in 17 years. Notably higher is the rate for black teens: 38 percent. With adults applying for more entry-level jobs in the poor economy, teens are often pushed from the picture. In the past year, the rate of unemployment among teens has grown twice as fast as among adults.

Steven Rothberg, president and founder of CollegeRecruiter.com, says that job recruiters can certainly attest to the real-world validity of these statistics. "We've seen a significant increase in the anxiety levels amongst the students and recent graduates who use CollegeRecruiter.com to find internships and entry-level jobs," he says. "They're applying to far more jobs and they're spending far more time searching for their jobs."

None of this inspires much confidence in the graduating class of 2009. Companies surveyed last month by the National Association of Colleges and Employers said they expect to hire 22 percent fewer college grads than last year. Furthermore, on-campus recruiters are now tending toward hiring interns rather than full-time employees.

Analysts say that young people who are lucky enough to find jobs should recognize that holding onto employment may be the toughest job of all. In the past few years, the trend has become clear: Adults are holding on to jobs that would normally be opened up to new, younger workers. As Andrew Sum, director of the Center for Labor Market Studies, recently put it, "The younger you are, the more you got pushed out of this labor market."

Rothberg explains that this is a natural consequence of the recession. "Employers are more likely to lay off young employees simply because many have a last-hired, first-fired policy." It's a tough place to be in, but Rothberg suggests that recently laid-off youth look ahead to the next step: "If you've been laid off, understand that in a terrible recession like we're in now, employers attach no stigma to you being laid off.... Don't be bitter. Ask your manager or human resource[s] department what help they can provide with reference letters, outplacement assistance, etc., and then immediately hit the ground running."

Claim Your Benefits!

Laid-off youth should also familiarize themselves with the unemployment benefits they have access to. Workers terminated through no fault of their own qualify for unemployment insurance for about 26 weeks, depending on state law. Most states have substantially extended this period given the current economy -- Massachusetts and New York have set their limit at around 59 weeks. Unfortunately, college grads who have not yet been employed are not eligible for benefits. (To learn about your state's eligibility requirements for receiving benefits, visit the U.S. Department of Labor's website on state-by-state assistance.)

According to the U.S. Department of Labor, the Obama administration's new stimulus package -- the American Recovery and Reinvestment Act -- gives states incentives to expand eligibility for unemployment benefits. Up to $7 billion will go to states to encourage reforms, including coverage of part-time workers and increased insurance payments. The Recovery Act also extends federally-funded emergency unemployment compensation to the end of 2009. That means that those extensions in the number of weeks unemployed Americans are compensated will stick around at least through the end of this year.

The new stimulus package also relieves some of the tax burdens associated with unemployment benefits by waiving taxes on the first $2,400 in benefits earned in 2009.

Rub Elbows, Shake Hands

For unemployed job seekers, Rothberg says the most important thing is to keep networking by publicizing your job search and making new potential business contacts: "[S]tudents and recent grads should spend most of their time networking. That doesn't mean asking everyone you know if they can help you find a job... it means asking people you know and people they know how you can help them."

Tucker, who's in the beginning stages of her own job search, agrees. "I personally found those job search websites to be pretty useless," she said. "[E]ven if you come across a job you might like and send in your resume, there is a good chance no real person will ever even look at it. Friends however can be a great job search resource! Inform everyone you know what kind of job you are looking for. You never know who might come up with a potential job lead for you."

Even while you're unemployed, says Rothberg, there are plenty of ways to sneak a foot in the door. "For example, volunteer to work for a non-profit or a small business in a way that provides you with more career-related experience. Wait tables to pay your bills and volunteer part or even full-time."

Blog, Learn, Create

These and other productive ways to occupy your time during a long job search can make for great resume-builders. For instance, figure out what you're interested in and start a blog on that topic. Take a class, teach a class, learn a new language, or write a book. You might even consider starting your own business. In a struggling economy, creative problem-solving, innovation and leadership will get you everywhere.

And, believe it or not, there are industries that could actually see growth in the coming year. The federal government is the only industry that's been hiring more new workers this year than last. As the Obama administration expands, and a generation of workers retires, this sector is making room for new grads. Green industry is another sector with high hopes for job creation.

President Barack Obama's new stimulus package dedicates $60 billion to environmental initiatives, including clean energy projects, infrastructure projects and scientific research. Of that $60 billion, $500 million will go to green jobs training. This is likely to focus on such areas as research and development in clean energy technology, green manufacturing jobs and green building jobs.

Notably, the Obama administration recently hired green jobs rock star Van Jones as an adviser to the White House. Jones is best known for his work to cut poverty through the creation of green-collar jobs. Cities and states are also doing a lot to grow green jobs. Last month, California Governor Arnold Schwarzenegger unveiled the California Green Corps, a green jobs training program for youth between the ages of 16 and 24.

New Growth

According to a recent report (PDF) by the public policy organization, Demos, the next ten years will see the health care and education industries growing at a rapid pace. Even last month, as 663,000 jobs were lost, new jobs opened up in the areas of health and education. Demos projects a need for registered nurses, medical assistants and personal home and health care aides. In education, there will be a growing need for K-12 teachers and teaching assistants.

With Congress recently passing a $3.5 trillion plan to expand health care coverage, college loan programs and a CO2 cap-and-trade system to fight global warming, job growth in these three areas has even more promise.

Investment in environmental protection, health care and education provides a glimmer of hope for a new generation of workers facing an economic crisis. Ultimately, the future of our economy is in the hands of these young workers. We can only hope that this realization will motivate employers, the government and young people themselves to take action and do everything possible to create new jobs.

(Onnesha Roychoudhuri contributed research to this story.)

See also: More Tips For Graduating Job Seekers (SF Chronicle)

Suemedha Sood is a 2007 fellow in the Academy for Alternative Journalism at Northwestern University's Medill School of Journalism. The former assistant editor at the Center for American Progress, she is a frequent contributor to WireTap.