Got an interesting tidbit today that I was somewhat aware of but hadn’t seen broken out clearly before: Unemployment rate by income decile: Lowest: 31% Second: 17% Third: 15% Fourth: 13% Fifth: 9% Sixth: 8% Seventh: 7% Eighth: 6% Ninth: 4% Highest: 3% These are rough numbers from a chart I saw from Empirical. The data is from The Center for Labor Markets. Really speaks to another why high end retail has such a higher beta to the recovery in top end retail. Also speaks to the fact that if you are skilled/in demand you are generally fine. Education is key.
So what are the breakouts to determine the deciles?
Interesting. Would you be able to post a link to the report or e-mail it to me? I agree with CPierce that I’d appreciate some insight into deciles, how long people have been unemployed + employment rate today by decile if available, and so forth.
Aren’t the incomes of all unemployed in the lowest decile?
Sure, you can tell by the fact that my initial post made no grammatical sense that I was in a hurry to get out of the office. Things to do. The study Empirical took the data from is in the below link, table on page nine and explanation of deciles on page 6. Basically, they took the household income in 4Q08 for the deciles and then looked at the unemployment rate for those deciles in 4Q09. http://www.clms.neu.edu/publication/documents/Labor_Underutilization_Problems_of_U.pdf
It would really be interesting to see highest decile broken out although I doubt you would see much change.
I have 2 friends that are unemployed. One is MBA working in our business and been unemployed now for roughly 22 months. The other is JD MBA, practicing compliance attorney, and been out of work for 15-16 months now. To say it’s humbling to not find work is a bit of an understatement. Of course, some people here will say they’re not looking hard enough. I’m not posting their entire background, so I would withhold judgement on that comment.
I am sure that a lot of people now understand what being a “Discouraged Worker” means and how it happens. It’s like those medieval tortures that look so simple, and you think “how could that really be torture,” and then you actually experience it. Instead, you think “just keep your chin up and keep looking,” but unless you’ve experienced it, you don’t really know how ridiculous that sounds. I’ve been there, and it is absolutely horrific what it does to you. Thank God things are better now.
CPierce Wrote: ------------------------------------------------------- > I have 2 friends that are unemployed. One is MBA > working in our business and been unemployed now > for roughly 22 months. > > The other is JD MBA, practicing compliance > attorney, and been out of work for 15-16 months > now. > > To say it’s humbling to not find work is a bit of > an understatement. > I feel for your friends. A guy I used to work with was fired over a year ago and finally landed somewhere very recently. He ended up having multiple offers, so things may be up. There are going to be outliers in any decile (I am assuming your friends were making pretty good money in the year ended 4Q08, or they really wouldn’t relevant for the study) case, but I just found it interesting that the people that made the least money a year ago also exhibited the highest unemployment a year later by a huge margin. The rich/perhaps educated get richer and the poor get poorer. Same trend has been going on for decades.
Is it all that unusual? The boss gets to fire the worker in most businesses i’ve worked in…
The point is to structure your personal finances so you have a number of different cash flow sources. For example trading options, having a few web based businesses, ebay auctions, consulting on the side, etc. This way you can undercut other analysts and employers will think they are exploiting you and love low cost labor. While the options you sold have a notional value that exceeds your directors net worth.
The title of that report makes it seem as though this problem is unique to this recession, but the report itself doesn’t compare the data to past recessions.
Any numbers on unemployment for 2009 and 2010 grads? I’m just curious. I know 8-% of 2009 grads were unemployed as of June 1 2009. Which is INSANE, plus i’d say 90% of those kids dont even show up on jobs reports b/c they’ve never held a job.
…and I know some c/o 2008 grads still without jobs!
2009 finance grad here, Tuition: $100,000 Opportunity cost of 4 years of college: $80,000 Cap and gown: $0, on the house Getting a rejection letter for a PT customer service job, 12 months after graduation: priceless fml
timotimo Wrote: ------------------------------------------------------- > The point is to structure your personal finances > so you have a number of different cash flow > sources. For example trading options, having a few > web based businesses, ebay auctions, consulting on > the side, etc. > > This way you can undercut other analysts and > employers will think they are exploiting you and > love low cost labor. While the options you sold > have a notional value that exceeds your directors > net worth. Still on that option trade high ? You still haven’t disclosed your $ gain