The Recession, U.S. Economy, and Saturated Job Market: What to Do
It was reported in March 2008 that employers cut back another 80,000 jobs in the U.S. economy making it more apparent that the country is in a recession. For the American going to work each day, it can be quite unsettling wondering if you will have to go to a special meeting and come home early. It is important to understand what the current job situation is today and what it holds for the future and plan your financial decisions in its context.
There are just not enough well-paying jobs to go around in the U.S. economy. Several factors are at work here. Many companies have moved their operations overseas where labor and taxes are cheaper. The Baby Boomer generation is not retiring as early in order to keep paying for the high prices of gasoline, healthcare, and paying off their consumer debt. We don’t have major projects like the Space Race and the Cold War that created so many jobs in the U.S economy from 1950-1990. For the last few years many have worked in real estate because it was lucrative and relatively easy to get into but that career has bottomed out with the housing crisis.
Do not rely on the government. President Franklin Roosevelt created in 1933 what is known in history as the “New Deal” program to pull the U.S. economy out of the extreme joblessness situation caused by the Great Depression. The candidates for office make promises about jobs but you should not rely on these promises. There are steps you can take today—even if you have lost your job. You can do things like try self-employment if you have a self-employable skill. Remember that economic forces are what cause the recession—something the government can do little about apart from just creating the jobs which is unlikely to happen.
It is quite possible that the current state of the U.S. economy will create more expatriates. For those with no home mortgage to tie them down, migration to warmer climates and countries with better prices is becoming an attractive option. The baby boomer retiree chooses to retire in a third world country to have his or her social security last longer instead of being a burden on the adult children. Many Americans have picked up skills that allow them to work from wherever there is an internet connection like writing and computer programming. When faced with the impossibility of heating a home or living where the weather is warm year round, migrating to a new country can mean one’s very survival.
Do what you can to recession-proof yourself at your job. When you see those around you and in the U.S. economy getting laid off, keep in mind that they probably had the higher salaries and were let go mainly to cut costs. You can make yourself valuable to your company by asking to take on the work of the departed coworker. You might be taking on more workload for the same pay but it decreases the likelihood that a company would let you go.