CLASS OF 2014 FACES TOUGH JOB MARKET

Original Story Money.CNN.com

Class of 2014: Get ready for a rocky job market.

It's been about five years since the recession officially ended, but there is still a sizable group of young high school and college grads who are idle. Known as "disconnected youth," these under 25-year-olds are neither working, nor enrolled in college.

Roughly 1 in 5 young high school graduates and 1 in 10 recent college graduates fell into these ranks last year, according to a new report by the Economic Policy Institute, a liberal think tank.

The researchers used government census data to come to some rather depressing conclusions for the class of 2014. Young people graduating from high school or college in the next few months will "join a sizable backlog of unemployed college graduates from the last five graduating classes in an extremely difficult job market," they say.

Share: Not working, not in school? What are you doing instead?

The growing ranks of "disconnected youth" make for a worrisome trend, confirmed by earlier studies conducted by the Brookings Institution and the Social Science Research Council.

While the three research groups crunched the data separately, the conclusions all remain the same: Being "disconnected" is a setback that could have a lasting impact on millennials' career tracks and lifetime earnings.

So if they're not working or studying, what are these young people doing instead?

Unfortunately, the data doesn't get very specific. Many are actively looking for jobs, while others may be taking care of family, volunteering, living with a disability that makes it difficult to work, or yes... vegging out playing video games.

 As for those who do get jobs, they are not immune from the ongoing impact of the jobs crisis, either.

For starters, even the lucky graduates who find jobs are starting out with wages lower than the generation that came before them. Wages for young graduates have been falling for over a decade, according to EPI.
 Recent high school grads (ages 17 to 20) earn hourly wages around $9.82. After adjusting for inflation, that's 11% lower than they earned in 2000.

For recent college grads between the ages of 21 and 24, average earnings are around $16.99, or 8% lower than they were in 2007.

These declines represent a substantial amount of money. If wages had merely remained about the same, for example, today's young graduates would be earning about $2,500 to $3,000 more per year.

Meanwhile, job benefits are also on the decline. In 2000, about 53% of newly employed college grads received health insurance from their job. Now only 31% do.

It's possible to overcome these setbacks as young workers move up the career ladder, but the process often takes 10 to 15 years, the report warns.

"The evidence suggests that because of their unlucky timing -- in other words, through absolutely no fault of their own -- this cohort is very likely to fare poorly for at least the next decade," it says.

Michigan Gov. Supports Immigration and Chrysler/Fiat

Story first appeared in The Detroit Free Press.

The Michigan Governor said Monday that he considers talent to be the state’s most valuable resource and said his goal is to keep people in the state who have valuable skills, including foreigners who study at the state’s colleges.  He told a group of about 40 recently hired Chrysler employees that he is probably the most pro-immigration governor in the United States.

The United States became economically strong in part because immigrants who came to America seeking a better life became entrepreneurs and sought degrees in higher education.

There are now immigration laws set up in the U.S. that say we’re going to educate these really bright people, and then basically tell them to get out.

Snyder’s comments came in response to a question about the promotion of diversity in Michigan from a Chrysler employee. The governor spoke to employees for about 10 minutes before fielding questions about tourism, the state’s unemployment outlook and the quality of available jobs in the state.

Michigan’s unemployment rate has dropped from a high of 14.2% in August 2009 to 8.5% in March as the automotive industry has begun to recover and hire more workers. But the Michigan governor feels that the rate is still too high.

Chrysler’s progress under majority owner Fiat is a model that the state should follow as the state works to reinvent itself.

Under majority owner Fiat, Chrysler reported its first profit in years in 2011 and its first quarter earnings of $473 million were nearly four times its earnings for the same period last year. As Fiat and Chrysler get closer to a full merger it is hoped that the state’s available talent and proposal to reform the state’s personal property taxes will encourage the company to pick Auburn Hills as its global headquarters.

They are an industrial company that is dong fabulous work, that reform would actually make Michigan a much more competitive place and really encourage them to be here.

The governor declined to provide any specific updates to his efforts to reach an agreement to build a new international bridge across the Detroit River.

Snyder met in Windsor Thursday with the Canadian Transport Minister to work on a plan with Canadian officials, despite a lack of support from the Michigan Legislature.


For more local and Michigan business related news, visit the Michigan Business News blog.
For national and worldwide related business news, visit the Peak News Room blog.
For healthcare and medical related news, visit the Healthcare and Medical blog.
For law related news, visit the Nation of Law blog.
For real estate and home related news, visit the  Commercial and Residential Real Estate blog.
For technology and electronics related news, visit the Electronics America blog.
For organic SEO and web optimization related news, visit the SEO Done Right blog.

How to Get Unemployment Aid

First appeared in Record-Eagle

The state offers various ways to file for or obtain information on jobless benefit claims, though officials acknowledge some options are more difficult to access than others during peak-use periods.

Chawn Greene-Farmer of the state Department of Licensing and Regulatory Affairs said the best way to communicate with the Unemployment Insurance Agency is to set up an online account by going to the state's website at www.michigan.gov/uia and then linking to "UIA Online Services for Unemployed Workers."

The agency has about 100 employees who work as "Virtual Problem Resolution Agents" who can help clients with their claim history, account balances and related information from Mondays through Saturdays.

The state also offers several webcast tutorials on its site to walk clients through the claim application process.

Claimants can also telephone the Michigan Automated Response Voice Network — known as MARVIN — at 1-866-638-3993 to check claim balances and get information. While the MARVIN system was swamped with calls in recent weeks and many clients weren't able to get through, Greene-Farmer said the agency is adjusting its customer service staff to deal with high call volumes.

For face-to-face assistance, claimants can visit a Problem Resolution Office that is open weekdays from 8 a.m. to 4 p.m. The northern Michigan office is in Gaylord at 400 W. Main St. in Suite 102.

The state offers another toll-free help line at 1-866-644-3577 that has pre-recorded messages about unemployment insurance and extended benefit programs. No live staff is available through that service.

If all else fails, residents can contact their state lawmakers for assistance. Eric Dean, chief of staff for state Sen. Howard Walker, of Traverse City, said more offices welcome calls from constituents needing help with state agencies.

Large Call Volume Makes for Frustrating Unemployment Claims

First appeared in Record-Eagle

Henry Kroesing takes a voluntary layoff from his job at the local Sara Lee plant each December so younger employees with families and mortgages can work their full schedules.

State unemployment benefits help Kroesing, 71, make ends meet during the down time. But not this year.

In January, the state Unemployment Insurance Agency's automated computer system told the Traverse City resident he wasn't certified to receive jobless benefits, though he'd followed the same routine for years.

Kroesing turned to state officials to resolve the glitch, and that's when his frustration mounted. Hours turned into days as he tried to reach a live voice on the state's telephone help line.

Kroesing repeatedly called, to no avail.

"For the first two weeks of January, I couldn't get through," Kroesing said.

He wasn't alone. Residents across northern Michigan shared his frustration as they ran into bureaucratic brick walls while trying to obtain unemployment benefits.

State officials came up with two excuses: a glut of inquiries created by new claims from seasonal layoffs in the retail and auto industries, and a federal unemployment benefit extension approved over the holidays.

"All those factors played into the large volume of calls we received," said Chawn Greene-Farmer, spokeswoman for Michigan's Department of Licensing and Regulatory Affairs, the agency that oversees the unemployment insurance group.

On one morning last month Kroesing began calling the unemployment agency's automated number as soon its office opened, while his stepson dialed on another phone.

"I was calling, he was calling; we still couldn't get through," he said. "We sat here for seven hours that one day. Finally, I just gave up."

'A lot of confusion'

The same daytime nightmare confronted Copemish resident Todd Humphrey last month after he committed a minor error while filing his online claim. He tried to contact someone at the state to fix the problem.

"I called for four hours and never got through," Humphrey said. "When you've got a (child) at home, you can't spend all day on the phone."

Greene-Farmer said the state typically prepares for and receives an increase in post-holiday calls, thanks to seasonal layoffs common in many parts of Michigan.

But Congress dealt a wild card this year — a holiday season extension of jobless benefits that muddied the water but ultimately didn't change the status of most Michigan residents' claims.

"There was a lot of confusion about that," Greene-Farmer said. "People had questions. That's understandable."

Kroesing finally drove to the state Public Resolution Office office in Gaylord on Jan. 18 to seek answers. There, he encountered one state employee and more than two dozen others — people from Levering, Petoskey, Mackinaw City — who had the same problems with their unemployment claims.

His perseverance paid off. He received an unemployment check a couple days after the face-to-face meeting in Gaylord.

"The gentleman was very polite; he knew the answers," Kroesing said.

Kroesing missed out on two weeks of jobless benefits, though, a shortage that put a crimp in his household budget.

"The utility bills, the groceries; I depend on it," he said. "I've never encountered the problems we've encountered this year. Never. It's very upsetting."

Humphrey also climbed into his vehicle and slogged through a snowy drive from northern Manistee County to Gaylord to reach the state office at 7:30 a.m. A state employee quickly resolved the problem.

But an hours-long trip in rough weather seemed a bit much.

"I had money for gas; some people don't," he said. "It'd be nice if they could free up some people for phone time."

It's stressful for families to wait for jobless benefits, especially when they can't get answers on their claims' status, Humphrey said.

"The bills get backed up, and you get off-schedule. Pretty soon people start calling you wondering why they aren't getting paid," Humphrey said. "You've got to tighten your belt a little bit; pay the bills and see what's left over for groceries and gas."

'Frustrated and upset'

Kroesing and others sought answers at the Michigan Works office in Traverse City. But staffers there said their hands are tied.

Unemployment insurance regulations are complex, and Michigan Works employees can't provide counseling, other than to offer standard advice such as calling during less busy periods.

"We're in a real Catch-22 situation," said Jan Warren, director of the Michigan Works offices in northern Michigan. "People come in very frustrated and upset, and they need help."

The offices allow visitors to use their phones or computers to seek jobless claims information. But that's no guarantee of success.

"It's been harder and harder for people to get through," said Jane Sage, who manages Michigan Works' Traverse City office. "We have the same (telephone) number everybody else does. We certainly can't make recommendations or suggestions."

Greene-Farmer said the UIA office employs about 300 workers in its customer service division to handle both phone and online inquiries about jobless benefits.

"We can re-assign staff to those areas as need be to handle that volume, and that's what we've been doing," she said.

 She described the volume of calls as "extremely high" in early January — the agency wouldn't give a specific number — and acknowledged that many clients couldn't get through.

"We are concerned," she said. "We're trying to meet the demand as best we can with the resources we have available."

State lawmakers also heard from residents frustrated by unemployment claim troubles.

"There are multiple issues with unemployment claims with constituents," said Eric Dean, chief of staff to state Sen. Howard Walker, R-Traverse City.

Dean said Department of Licensing officials sent a late January email to lawmakers to explain recent telephone tie-ups, as well as their response to the problem. Lawmakers try to help but can't do much more than refer residents to state websites or phone help lines, Dean said.

Greene-Farmer said the agency is looking at other solutions, including expanding the number of PRO offices such as the one in Gaylord elsewhere in Michigan. They also constantly study call volumes to determine where assistance workers are most needed.

"We're going to continue to monitor what's happening and see what our demand is," she said.

Kroesing hopes his problems are resolved for now. But his recent experience will make him think twice about accpeting a layoff to benefit others.

"Sometimes I wish I wouldn't have taken the layoff," he said. "If I'd been aware of the problem, I wouldn't have taken it."

Michigan Unemployment

First appeared on Associated Press

Michigan officials say the state's unemployment rate fell sharply again in the latest month to 9.3 percent, the lowest level in more than three years.

The state said Wednesday that December's seasonally adjusted unemployment rate was down 0.5 percentage points from November's 9.8 percent and down 1.3 points from October.

The national unemployment rate was 8.5 percent in December.

The Bureau of Labor Market Information and Strategic Initiatives says the number of Michigan residents working rose for the fourth straight month in December. Meanwhile, the size of the civilian labor force continued a drop that saw 100,000 fewer people working or looking for work last month than one year earlier.

The last time the Michigan unemployment rate was lower was September 2008, when it stood at 8.9 percent.