1. H-1B Ready to Work Conference
October 15, 2015
PLENARY SESSION: LONG-TERM UNEMPLOYMENT: WHY IT MATTERS AND WHAT WE CAN DO ABOUT IT
Speaker:
Maria Heidkamp, Senior Researcher and Director of New Start Career Network at the John J. Heldrich Center for Workforce Development, Rutgers University
Special Guest:
Christopher P. Lu, Deputy Secretary, U. S. Department of Labor

2. Long-term Unemployment: Why it Matters and What We Can Do About it Maria Heidkamp Senior Researcher and Director, New Start Career Network John J. Heldrich Center for Workforce Development Rutgers University USDOL Ready to Work Grantee Conference October 15, 2015
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3. During the Great Recession, 8 in 10 Americans Experienced Unemployment — Directly or Indirectly
23%
were laid off from a full- or part-time job
11%
know someone in their immediate household who was laid off, if not laid off themself
23%
11%
26%
know someone in their extended family who was laid off, but no one closer
21%
do not know anyone who was laid off
26%
21%
13% 5%
13%
know a close personal friend who was laid off, but no one closer 5%
know a friend of their immediate household who was laid off,
but no one closer

4. Long-term Unemployment During and After the Great Recession in America
In the U.S. in late 2015:
2.2 million Americans unemployed for more than 6 months
1 in 4 of all unemployed workers (27%)
Still higher than the 26% level reached in 1983 during the nation’s worst previous recession
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6. While long-term unemployment is down, signs of labor market weakness persist
Share of Americans participating in the workforce dropped to 62.4% -- the lowest share since (when women were less likely to work)
Council of Economic Advisors estimates roughly half the decline is due to aging workforce, but many prime age workers (25-54) have left as well.
In addition: there are 6 million involuntary part-time workers, 1.9 million marginally attached to the labor force, and 635,000 discouraged workers

8. Source: Schrager, A. If nearly 40% of Americans aren’t working, what are they doing? Available at:

10. Long-term Unemployment During and After
the Great Recession in New Jersey
More than 125,000 people in New Jersey
Over three-quarters unemployed a year or longer
Roughly half over 45 years old
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11. New
Jersey
was 2nd at
41%
Source: BLS Data

12. Who are the Long-term Unemployed?
Affects all:
Levels of education
Income groups
Ages
Occupations
Industries
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13. Why are So Many People Unemployed for So Long?
CAUSED BY:
Worst recession in 70 years; slow recovery
Mergers, acquisitions, consolidations, global competition
Attitudes and assumptions of employers about the long- term unemployed
Age discrimination
Outdated job search skills
Lack of support and services

14. Why are So Many People Unemployed for So Long?
NOT caused by:
Skills shortages
Lack of effort by the unemployed
Reluctance to accept lower pay
Dependence on governmental programs
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15. The Devastating Impacts:
“I just want to get my life back” — Unemployed worker
Financial disasters: Diminished earnings, more debt, bankruptcies, and foreclosures
Depleted savings, early or delayed retirement
Damaged health: Skipping visits to doctors, illness, stress, anxiety, depression, drug and alcohol abuse, suicide
Families in crisis
Government services: Higher spending on social supports; less revenues
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16. Mental Health, Unemployment and Job Search
Mental health problems found in roughly 16% of the general population, and 34% of the unemployed
Mental health problems particularly pronounced for men, blue-collar workers, and the long-term unemployed
People who participated in formal job search programs or workshops were 2.67 time more likely to find a job than their peers who didn’t participate
Factors central to effective job search: Enhancing self-presentation; improving self-efficacy; learning job search skills; promoting agency and proactivity; accessing relational support; and goal-setting.
Must focus on both job search skills development and motivational issues together
Source: Sharone, O. , Blustein, D., and Van Horn, C. Long-term Unemployment in the United States. (forthcoming)

17. The Long-term Unemployed are Not Getting Much Help
Government aid other than Unemployment Insurance
Help from
job coach 9%
13%
Attend job club/
networking meeting
Job training 4%
10%

21. Helping New Jersey’s Long-term Unemployed Job Seekers
Major funding provided by the
Philip and Tammy Murphy Family Foundation,
and by New Jersey Resources, the Fund for New Jersey, and the
John J. Heldrich Center for Workforce Development at
Rutgers University

22. New Start Career Network
Volunteer Career Coaches
Information and Advice
Older, Long-term Unemployed Job Seeker
Employer
Engagement
Access and Referral to Services

23. Partners and Collaborators

24. Welcome to the NSCN Website
The goal of the New Start Career Network is to provide older (ages 45+), long-term unemployed New Jersey job seekers with access to free, personalized career services, including web-based information resources and in-person and virtual career coaching.

25. Get Involved Volunteer as a career coach
Hire a long-term unemployed worker
Refer a friend or family member to NSCN
Maria Heidkamp
Carl Van Horn
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