Category Archives: jobs

State of economy for less-educated young people compounds growing Opportunity Gap

Pell City 2007 HS graduation; Flick/kwsanders

Pell City 2007 HS graduation; Flick/kwsanders

While parts of the economy have rebounded since the Great Recession of 2008, the effects have been much worse for the poor, and especially the less-educated young Americans, and those not fortunate enough to graduate from college.

Since 2008, the housing market has started to bounce back.

The stock market, for those fortunate enough to have net savings rather than a negative net worth has more than recovered its recessionary losses (pictured is the S&P500 index).

Recovery in S&P500 since 2009 recession

The economy has created 6.15 million jobs from March 2010 through April 2013 (based on provisional numbers for March/April 2013), enough to lower unemployment but only through many people giving up on finding jobs.  The  percentage of Americans employed in the population hasn’t budged over the last 3.5 years and remains fixed at between 58% and 59%. Larry Summers thinks that the numbers of long-term unemployed is the biggest problem facing this country and is at historically unprecedented in the period since the Great Recession of the 1920s and 1930s.

Put this together with the data that David Leonardt released (“The Idled Young Americans“) showing that the impact has disproportionately fallen on young folks.  Moreover, levels of employment among 16-24 year olds, even as recent as May 2013 remain stubbornly at 45%, at levels not seen in the US since the early 1960s.

Our own research on the fact that children born to less educated families are facing a growing opportunity gap.  American young adults from the bottom socioeconomic quarter are graduating from high school or dropping out with less of the hard academic skills or soft non-cognitive skills necessary for life success.  [We find significantly growing gaps between children from the top third or quarter of socioeconomic families and the bottom third or quarter on measures as diverse as involvement in extra-curriculars, involvement in sports, K-12 test scores, obesity, social trust, involvement with religion, social connectedness, volunteering, college attendance, and college completion.]

And the intersection of these two trends — consequences of the current lackluster economy being borne by the young adults and the growing opportunity gap — means that these gaps are borne disproportionately by less educated young adults.

For example, if one looks at employment to population ratios for 25-34 year olds in 2012, it was only 69.8% for those with a high-school degree (but no college), whereas it was 84.4% for those with 4-year college degrees or more.  Another way of putting this is that only 16% of college-educated 25-34 year olds were out of the labor market versus 30% of those with only a high school degree.

And if that were not enough, there is growing body of literature suggesting that experiences of unemployment or involuntarily being terminated from jobs create long-term scarring effects both on the lifetime earnings of these young people, but also their civic and social connectedness throughout their lives.  [See for example Davis/von Wachter or Gregg/Tominey or Brand/Burgard.]

[There is also unpublished data on this scarring effect in: Laurence, James, and Chaeyoon Lim. “The Long-Term and Deepening Scars of Job  Displacement on Civic Participation over the Life-course: A Cross-National Comparative  Study between the UK and the US.”]

We are brewing a recipe for long-term adverse consequences for these young Americans, especially the less educated ones, and our government ought to be POUND-wise, even if it is “PENNY-foolish” in the eyes of others and invest in jobs for these young 16-25 year olds to avoid the much longer long-term adverse effects.

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Why weak ties are strong for job searches

Flickr photo by pvickering

Mark Granovetter is famous for uncovering the strength of weak ties in job searches (i.e., that weaker ties ironically are more helpful in landing jobs than one’s close friends).  Granoveter, after interviewing job seekers, posited that it was because one’s close friends tie one back to jobs and job leads that one already knew about whereas weak ties connected one to jobs that one hadn’t heard of.

Sandra Smith, sociology at Berkeley, is doing interesting work uncovering the why.  She’s interviewed 157 workers of various races and various job levels at a public university (Berkeley?) to learn of cases where they did and didn’t help people land jobs and what was good or bad about the experience.  Smith notes that in Granovetter’s work the job seekers often don’t know exactly what or was not done by their strong or weak tie.  [Her past work has been on how distrust hurts low-income blacks in the job referral process, but this new work, as of yet unpublished, is more general.]

It turns out, that people generally don’t refer their close friends to jobs for two reasons: 1) they are more worried that it will reflect badly on them if it doesn’t work out; and 2) they are more likely to know of the warts and foibles of their close friends and believe these could interfere with being a good worker (e.g., Jim stays up late to watch sports, or Charles has too much of an attitude, or Jane is too involved with her sick father).  Weak friends one can more easily project good attributes onto and believe this will work out.

She spoke of one interesting case, “Redmond”, who worked in a growing university department that was hiring 30 new people and whose manager asked workers to help refer good employees.  Redmond was asked soon thereafter by the parking attendant at his church whether he knew of any jobs for his wife who had lost her job (both the parking attendant and his wife were Ethiopian immigrants in the US and lived at Redmond’s church).  Redmond barely knew either of them, but took many steps to advance her candidacy (driving her to the interview, introducing her to people at the office, checking on her candidacy, and getting information filled out again when the paperwork was lost, etc.).  Redmond also had 10-15 good friends who needed a job, but he only told 2 about the available jobs, and even for those 2, didn’t take any steps to advance their candidacy since he had reservations about them.

In some cases, people did intervene on behalf of family or friends, but sometimes this was more lukewarm (e.g., enabling their applicant-friend to put the job-holder’s name on the applicant as a referrer, but making no efforts behind the scenes to advance their candidacy).

The job holders seem to put the interests of the workplace generally ahead of the interests of their friends, perhaps because they are jealously guarding their workplace reputation would could be sullied by a poor referral.    The job holders act as “moral” gatekeepers, trying to keep out the unworthy.

Smith is working to try to categorize types of job assistance and what leads one to help a friend/relative vs. helping a weak tie, and whether this assistance is to help the friend or improve the workplace.