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For today's jobless, 10% is tougher than it was in '80s
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Published: November 8, 2009
WASHINGTON
Compared to the last time that the jobless rate hit 10 percent, it hurts more to be unemployed today.
Americans have more than triple the debt they had in 1982 and less than half the savings. They spend 10 weeks longer off the job. And a bigger share of them have no health insurance, leaving them one medical emergency away from financial ruin.
For these reasons, the unemployed are more vulnerable today to foreclosure and bankruptcy than they were a generation ago.
The unemployment rate hit 10.2 percent in October. All told, 15.7 million Americans are out of work. Add in workers forced to settle for part-time work or those who have simply given up looking, and the rate is 17.5 percent.
Only twice since World War II has unemployment topped 10 percent -- now and from September 1982 to June 1983. In a few respects, life for the unemployed is better today than it was then.
Unemployment benefits are more generous, adjusted for inflation, and the Internet allows job seekers to network, scan for openings, and apply for jobs without leaving home.
If you're unemployed today, the odds are better that you will stay unemployed longer than a generation ago. And government surveys suggest that if you get laid off, it's more likely to be for good.
One reason is that industries such as construction and finance may never bulk back up to pre-recession levels. Even before the economy went south, demand for their products was inflated by the housing bubble.
Another reason that layoffs are more permanent: Manufacturers these days are more aggressive about using technology to boost productivity -- or they hire cheaper workers overseas as the economy improves.
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