Americans are fearful about the economy, lack of savings and unstable financial security. Now more than ever, households are having conversations about their employment or lack of. Today, the options aren’t available as they were in the beginning of the decade. Graduates are accepting whatever is offered and experienced workers are fighting for entry-level positions.
The job market is worse than the reported 9.1 percent in unemployment. When you factor many attempting to make ends meet, purchase bare essentials and avoid delinquency it’s far worse than one can imagine (Underemployment).
As we’ve read with the incident of Bank of America axing 30,000 jobs, it isn’t a far cry from other companies. Corporate America is attempting to find ways to keep its balance sheet in the black. Because of that, many employees are being offered less pay.
Mr. Myricks joined the 28 percent of teenage men in the work force — 39.7 percent of black teenage men — who were idle and looking for a job then. He spent over a year looking for work, and moved into a cheaper home with his wife, Briana, 20, to help make ends meet.
After a few months delivering pizzas part-time for Pizza Hut, he finally secured a full-time job in April 2010 at a box factory where his brother is an assistant manager.
“It is a very, very dangerous job,” Mr. Myricks said of his work at Georgia-Pacific. “There are operators in my plant who are missing fingers, or missing legs. They’re still working there, though.” (James Malone, a spokesman for Georgia-Pacific, said that the plant adhered to all federal and state safety regulations.)
Still, the young worker felt lucky to find a job that paid $14.34 an hour (plus benefits), enough to pay the bills and help support his father, who is battling leukemia.
Economists are noticing the trend of both underemployed and unemployed worldwide. It’s become a trickle effect as the financial crisis is becoming global.
And the unemployed will face another source of competition once the economy improves: Roughly 2.6 million people who aren’t counted as unemployed because they’ve stopped looking for work. Once they start looking again, they’ll be classified as unemployed. And the unemployment rate could rise.
So you may ask, what can you do to manage your household? If you are employed begin with investing in your company’s 401K plan. If your employer is offering a match you’re throwing away “free” money by simply not engaging. Begin with the matching amount i.e. 3%, which will be taken pre-tax. Now you’re starting to take care of yourself and Uncle Sam will have less to tax from your paycheck. Next, begin a savings account [something you can afford…every bit adds up].
It’s imperative you build an emergency fund in the event your underemployment becomes unemployment. Begin with $10 a pay then gradually increase. We suggest opening an online savings account so that the funds aren’t easily accessible.
Create an action plan to pay off your consumer debt one bill at a time. If you’re currently in collections you can negotiate payment options.
Remember, you must be willing to take control of your financial security and life. It’s time to consider what your next steps in life are.
“Love yourself enough to support yourself.”
Property of SMG, LLC
Reported by Bahiyah Shabazz, MBA