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Jobs Gains In 2011 Helped Those Hit Most By Recession

Job Market

By DEREK KRAVITZ   01/ 6/12 12:47 PM ET  AP

WASHINGTON -- For many people whose job prospects faded most during the recession, 2011 brought a small dose of relief.

When unemployment was surging, the youngest U.S. workers, the oldest, those without college degrees and men as a whole all suffered disproportionately. Last year, those groups – whose unemployment rates still exceed the national average – had better success than others in finding jobs, according to Labor Department data released Friday.

Many found low-paying jobs in technology firms and as health care technicians, machinists, autoworkers, hotel and store clerks and waiters.

A big exception was African Americans, who were especially hard hit by the recession. Their unemployment rate didn't budge in 2011.

All told, about 13.1 million Americans remain unemployed. About 2.5 million have quit looking for work altogether.

The proportion of American adults who have jobs has risen slightly over the past year, to 58.5 percent. But that's down from 59.4 percent in June 2009, when the recession officially ended, and from 63.4 percent five years ago.

EDUCATION:

Unemployment among workers with less than a high school diploma fell from 15.1 percent to 13.8 percent. By comparison, unemployment for those with a bachelor's degree declined by a smaller margin, from 4.8 percent to 4.1 percent.

"The less-educated tend to suffer more in downturns and recover more rapidly when employment picks up," said Lawrence Katz, a Harvard labor and economics professor.

Katz cautioned that the less-educated will face difficulty in coming years as many industries demand harder-to-find technical skills from job applicants.

SEX:

The unemployment rate for men fell more than twice as fast as for women in 2011. Hiring was strong among male-dominated industries like manufacturing. And more men entered some fields long dominated by women, including health care and retail.

The unemployment rate for men sank from 10 percent to 8.7 percent. But women remain better off. Their rate fell from 8.6 percent to 8.3 percent.

"You're seeing a shift," Katz said. "A lot of men are dropping out of the workforce, but those that are staying are seeking more schooling, more technical certifications, and are entering fields they wouldn't normally go into."

AGE:

In 2011, employment prospects were best for workers ages 20 to 24 and those 65 and up. Some young men are being hired for entry-level positions at lower pay than in years past. And some retirees returned to the workforce last year after their retirement portfolios took a beating over the past four years.

Unemployment is dropping faster for those ages 35 to 64. But part of the reason is that a disproportionate share of people in this age group have given up looking for jobs. Once people stop looking for work, they're no longer counted as unemployed.

Young adults and retirees fared slightly better than the middle-aged in 2011. Some gained lower-paying jobs in retail, manufacturing and technology firms.

The percentage of workers ages 20 to 24 and those over 65 who are employed rose at a faster pace than other age groups in 2011, according to the Labor Department data.

RACE:

Unemployment fell most among Hispanics. Their rate declined from 12.9 percent to 11 percent. In part, that's because a larger-than-average share of Hispanics have stopped looking for work.

Immigration has also slowed. That means there are fewer foreign-born job-seekers in the United States.

Since the recession ended more than two years ago, the employment gap between blacks and whites has widened. The rate for African-Americans was unchanged last year at 15.8 percent. By comparison, white unemployment fell from 8.5 percent to 7.5 percent.

Unemployment among whites 25 and over with a bachelor's degree is just 3.9 percent. For similarly educated African-Americans, the rate is more than double: 8 percent. In previous years, that gap had been roughly 1 percentage point.

One reason for the much wider disparity is that college-educated African-Americans are disproportionately represented in state and local government jobs, said Algernon Austin, director of the Economic Policy Institute's Program on Race, Ethnicity and the Economy.

As those governments have increasingly slashed their payrolls to close budget gaps, many black workers have lost jobs.

"The gap is becoming more noticeable after recessions end, and African-American workers are facing increasingly long odds at finding a job," Austin said.

Among the four identified racial groups, Asians have the lowest unemployment rate. It fell from 7.2 percent to 6.8 percent last year.

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WASHINGTON -- For many people whose job prospects faded most during the recession, 2011 brought a small dose of relief. When unemployment was surging, the youngest U.S. workers, the oldest, those wit...
WASHINGTON -- For many people whose job prospects faded most during the recession, 2011 brought a small dose of relief. When unemployment was surging, the youngest U.S. workers, the oldest, those wit...
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10:19 AM on 01/08/2012
Nope. people are going out on pensions and ss at 62. The public is not dumb. Any kind of reform is always to protect a corporation or a politican-never about the people.
Bush's bankruptcy reform was created to protect corporations from having to declare their shadow economies. The taxpayer picks up the tab again.,
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MiddleMolly
Working to better the USA!
10:51 AM on 01/08/2012
Yep.. or hanging on to their jobs no matter what. Companies are not rushing out to hire people who are 65...or 62 ... or 60.
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MiddleMolly
Working to better the USA!
03:29 AM on 01/08/2012
"In 2011, employment prospects were best for workers ages 20 to 24 and those 65 and up. "

While it is true that unemployment rates are lower for people 65 and up than they were a year ago and more people in this age group are employed. But this doesn't mean that there are necessarily "good employment prospects" for people who are 65+. We need to remember that the people who were 65 and older last year are not the same people who are 65 and older this year. In fact, there are 500,000 more people 65 and older now, in December 2011, than there were a year ago.

People who turned 65 in 2011 were born in 1946, the very first year of the notorious Baby Boomers! Now, these people can't get full soc sec until they are 66, so they aren't going to be retiring as soon as those born a few years earlier. So those who were hurt by the recession or those who intended to sell their homes to finance their retirements may, if they are fortunate enough to still have a job, keep working.
MORE....
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MiddleMolly
Working to better the USA!
03:30 AM on 01/08/2012
Continuing:

Last year, from 2009 until 2010, the plus 65 group added 200,000 people. This year, the plus 65 group added 500,000 people. The plus 65 age group has become skewed this year towards the younger, still working population. Over the past five years, with fewer babies born during the WWII years, the plus 65 age group had been skewed to the older people over 70.

There is no evidence that people over 65 are being hired at any quick pace, but there is plenty of evidence that people who are 65 are keeping their jobs- if they are lucky enough to have them.
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MiddleMolly
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03:31 AM on 01/08/2012
s/b: "It is true that unemployment rates...." (The rest makes sense; I just didn't delete that "while".)
11:47 PM on 01/06/2012
I was born yesterday!
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spinotter11
Spinning through life and trying to understand it.
03:33 AM on 01/07/2012
So you have many tomorrows to which to look forward.
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MiddleMolly
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03:35 AM on 01/08/2012
Hi, Spinny! How are you?
02:55 PM on 01/06/2012
This article does not make sense.
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MiddleMolly
Working to better the USA!
03:35 AM on 01/08/2012
There are some assumptions, fortressfountain, that don't make sense. I don't believe that employers are out there gladly hiring people over 65... See my explanation a bit above your post.