The Lost Decade
In 1999, the AFL-CIO did a study of how young workers—those under 35—were doing economically: How they were making ends meet, how they felt about their financial prospects. This year, Working America joined the AFL-CIO on a similar survey. Some of the questions were repeated exactly from 1999; others were new.
There’s a ton of information in the new study, way more than I can cover in one post here or even in the series of posts I’m planning, so if you have the time, go take a look at the whole thing (PDF) yourself.
But it’s a lot to get through, and if there’s one thing we know from this survey (and from last year’s Ask a Working Woman survey), it’s that a lot of people don’t have time to read the whole thing. Not because they’re lazy—because they’re working too hard to get by.
So let’s start by comparing today with 10 years ago, where that’s possible.
| 2009 | 1999 | |
| Do not have health insurance | 31% | 24% |
| Worry about not being able to get a permanent, full-time job with benefits | 36% | 27% |
| Have enough income to pay bills and put some money aside | 31% | 53% |
| Only have enough income to keep up with bills | 45% | 36% |
| Income is less than needed to pay bills | 24% | 10% |
| Do not have a retirement plan at work | 51% | 41% |
| Feel hopeful and confident about being able to achieve economic and financial goals over next five years | 55% | 77% |
On every question we returned to, in other words, young workers are worse off today than 10 years ago. That’s not because today’s young workers aren’t working hard—45% told us they were working more than 40 hours per week, and 28% would like to work more hours per week than they currently do.
The drop in optimism is perhaps most the shocking and heartbreaking finding. What does it say that the number of young working people who believe they can get ahead has dropped 22 points? Let’s take a second to think about that one: Of every 100 people under 35, 22 fewer now believe they’ll achieve their goals than did 10 years ago.
I grew up in Massachusetts. There are 17,759 undergraduate students at the University of Massachusetts. This means that 3,907 more of them are worried and concerned rather than hopeful and confident than was true 10 years ago, when I was just out of college. That’s an actual tragedy—not just for individuals scared for the future but for the very notion of the American dream.
What do you think has changed in the past 10 years? Are you more or less optimistic than you were then? How about the people around you?
I have union insurance through the Teamsters and it is the worst health insurance I could imagine! I had to get a secondary policy to pay for my coverage because Teamster coverage is inadequate!
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I was born & raised in Metro-Detroit with an upwardly mobile father, living in upper-middle class suburbs. I bought into Capitalistic ideals that promised me a life of financial reward for getting educated, working hard and following the rules.
While I was completing my Master’s Thesis, after spending 2 years as a Management & Training Consultant, I transferred to Mortgage Originations, back when it was still a reputable profession. I assumed I would have lines out the door for selling mortgages honestly and efficiently. I was, of course, wrong but made a good living off of repeat business and personal referrals anyway…until 2006. That’s when property values began to stagnate.
I left the business in February of 2008, when my employer asked me to work more for less money (by that time, significantly less than I needed to fulfill my household expenses; formerly 1/2 of what I could comfortably afford. Since then, I’ve been looking for employment outside the mortgage industry – using my credentials and transferable skills. No one even calls. I’ve had 3 serious interviews.
Since 2004, when my income became less than my bills, I’ve been supplementing with 10′s of thousands of dollars of savings. Like millions of other investors, I lost a fortune in the market (someone had to rake in the cash). My husband, formerly my Mortgage Origination partner, just found a commission-only job 3 weeks ago, but the market in Metro-Detroit may no longer support life. We still don’t have health insurance.
Since we’ve been uninsured, we have neglected our annual exams and paid cash for prescriptions that are now exhausted. My husband is on blood pressure meds so we pleaded with the doctor to renew without an examination. That prescription is nearly expired.
Earlier this year, my husband needed an emergency root canal. We went into more debt. In April, my husband slipped in the tub and nearly severed two fingers by breaking and falling on the soap dish. I begged the doctor’s office to stitch him up and we negotiated with the micro-surgeon to re-attach his tendons and a nerve at $20,000 off, taking equity out of our house for the down payment.
I’m frightened. But worse, I know we are “the lucky ones” because we had savings, equity, transferable skills and the ability to negotiate. Capitalism failed us. There is over 16% unemployment in my county. My state is the nations leader and there is no hope in site.
Employers are offering 2 part-time jobs rather than one full time with benefits. Except, instead of paying higher due to the lack of health insurance, they pay much less than half of a reasonable full time job. Other employers advertise positions including an “assessment” asking questions like “Are you willing to do more work when someone is absent? Are you willing to work longer hours to complete the work of laid off employees?” Hello? If there is work to be completed, why are you laying off people and saying it is due to “lack of work”? MBAs with 20 years experience are lining up for entry level jobs paying on a 1099 with no benefits. Come on!
The only good that has come out of this situation is based on my refusal to serve the interests of the elite. I’ve focused my outrage into my life-long passion for singing music that moves people. I write about feelings. Right now, I’m feeling that the system needs to change. I wrote a song called “Incite Social Evolution” that calls on the disenfranchised millions to fight against the wage-slavery conditions of the season and another called “Fiat Greed”, including information about how a worthless money system (owned by the world’s richest people) serves to further concentrate the wealth by charging Americans interest to print our own money. Anyone can listen FREE at http://www.sassyalternativemusic.com/downloads.
I hope to collaborate with causes like this to get the word out that the masses will not tolerate being forced into poverty by an increasingly wealthy ruling class. Please spread the word.
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I liked your song. You know yourself very well and it was an interesting story, though I’m saddened by the tale. I hope things get better for you and your husband and I’m glad you both have savings, but I was wondering what your both doing in the interim. It seems that something’s gotta change and while your not finding work, maybe there is different work to be done. I was thinking about moving to Detroit because I’d heard that property prices were really low. I’m into farming and sustainable agriculture and was thinking that I’d like to do an urban food program there, however plans have changed and my life path is headed in a different direction, but you may want to look into that if there is time for you to consider it.
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Thank you trhuggins!
My husband just got a commission-only job. We have yet to see if it will be sufficient. I am making and marketing my music. I’m all over the internet (google me) and have my music played on the air waves in the UK. My husband is also in the final editing process of his science-fiction book.
Regarding different work, I’m seeking work using all of my transferable skills including Marketing, Human Resources, Event Planning, Public Relations, Communications, Consulting, Training and Advertising. I’m not interested in Health care, the primary employment available or Sales.
I’m looking at any industry or government institution that doesn’t promote or support war (I’m a pacifist). I’m looking for management and non-management positions. I don’t get calls. I’m not interested in scrapping my MBA either. I’ve tried several versions of a resume and cover letter. It makes no sense for me to open a franchise of someone else’s passion when I have one of my own.
Until the government comes clean about being of the elite, for business, paid by the people and that Capitalism is a sick game where the masses serve the interests of Corporations and compassion is collateral damage, I’m using my skills to communicate and educate and hopefully, make a positive difference in the world. I trust that I will make money in my music, the right job will come along and/or my husband will be able to make enough to cover our very reasonable living expenses. If not, I will relocate.
I love what you do! It is my dream to be part-owner/investor of an organic farm. Prices are very low here. But it is nearly a ghost town…
Thank you for your comment.
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The degree of free-floating greed and foolishness that has developed over the last 20 years or so just astonishes me. This is the situation that we are in:
We are retired military. As such, we are somewhat protected from the health care disaster. Our kids, however, are not. When our youngest recently aged out of our coverage, we discovered that the COBRA-equivalent to continue his coverage was not going to be in our budget. He looked into finding a policy on his own, and discovered that in our state, a healthy single young man will pay roughly $350/month with a $4000 deductible, regardless of insurer. Also not in the budget. So he is without insurance until next spring, when he goes on active duty.
Our elder son, who is 30, has just moved home. He is a long-haul truck driver, and he simply is not making enough money to cover expenses and live on his own anymore. He wants to go back to school, but we have to figure out how to finance it…his current job is not compatible with school, yet he can’t afford to just quit and assume he can find another one.
We also have a niece with us who is going to school and working part time at a minimum wage job. She can just about afford her phone bill; her insurance still leaves her with medical costs she cannot meet.
We, as a society, have grown corporations that have lost the ability to think in terms that are longer than one quarter, and thus do not realize that by not supporting their workforce, they are ultimately cutting their own throats, because their workers are also their customers.
We, as a society, have individually forgotten that “I want it NOW and I want it for FREE” is an infantile way of thinking, because if it’s free, then somebody _isn’t_ getting paid, and that somebody is US.
I honestly don’t know which end frustrates me more, the greed or the foolishness.
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It’s comforting, yet sad and depressing to know that I’m not the only one who fits into these statistics exactly.
I work for a local small business who can’t afford to give me benefits, but there aren’t really any other jobs available that do supply benefits to their employees. Also, they can’t afford to give me a raise and I’m barely scraping by.
I have a mentally and physically ill mother who has been in and out of hospitals a lot for the last few months and neither one of us have health insurance. I know I could definitely use it because I would love to get some help for myself dealing with all the stress of barely scraping by in life.
I wish that the big CEOs and executive bureaucrats would realize what they’re doing to the youth of America, the peers of their children and the mess we’ll have to clean up when we get in their positions, given we actually get there.
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Personally working for the Airlines, I’ll be working Saturday, Sunday and the holiday Monday. This is nothing new as all airlines operate 24/7. However what is new is the conversion taking place where former full time union employee’s are being forced to become part time because the contract allows it. These employees also have in excess of thirty years seniority. But at least we’re not faring as badly as the United union employees in St. Louis. They’re being replaced with non contract workers at about eight bucks an hour. Generally the workers will be very young and very old and will take the job because it’s all they can find. Union men being replaced by scabs without a strike, what a labor day! These men and women will end up leaving their homes and scatter all over the country at different airports for United. Most close to retirement age will probably quit, just what the company is hoping for.
Extensive education is the only hope for young people today and find a specialty niche that is wanted. Labor is in it’s death throes and it’s sad because I love my union job.
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I wish to leave a brief comment. My wife is sixty seven years old(confined to hospital bed with cancer).Im sixty five years old(Disabled).My wife and I both started working when,We were sixteen years of age. our yearly wages never exceeded $15,000.00 per year. Ive driven semi rigs and charter buses,plus worked in factories.I have a rather intelligent question for parents,who have working children,whether living with parent or out on their own. Since when,does a person have to earn thirty thousand per year to live out on their own and survive? When,I drove semis and buses,The wages were alot less than those paid today. I have lived out on the road on peanutbutter/cheese cracker,soda pop and coffee.If,I ate at a truck stop,I learned to eat their cheapest meals. I was taught at early age to figure out my financies and balance a check book.My wife and I raised and educated six children. We have never,ever lived with our parents during our adult lives.Some parents never take the time to instill in their children(by good advice) how to survive fiancially in this life. Is, It any wonder,why children have maxed out credit cards,foreclosed homes and other fiancial problems. A person can’t live beyond their means and survive in society. My wife and I were taught early as children if,You can’t afford something,don’t buy it, If,You don’t need it,don’t buy it. Credit is fianacially killing our country. parents,I offer some friendly advice from one parent to another. If,Your children are of age,They should have a job, They should’t be liveing in your home. People must learn to survive fiancially and socially in society on their own. There is a time to be a parent and raise your children.There a time to be a friend to your family members. You can’t continue to support your children with money and provide them with a roof over their heads until,you die. if,you do then,You are doing a disservice to them and to yourselves.Wake up parents. Thank you
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I am very afraid for myself and my kids. I am the father of three, and that isn’t exactly easy when finacially things are well, but I have great fear as to what sort of country they’ll be living in.
My health insurance from work [HIP/Prime IIRC] from work SUCKS. There are deductibles upon deductibles. To understand it, you really need to be an attourney, which I am not.
Luckily, my wife is in the healthcare profession and as a Cardiologist, has excellent insurance. Myself and the kids are covered by her.
I look at the kids coming out of high schools and collegestoday and shake my head. I graduated in 1984, and was very fortunate to find work with Chase Manhattan Bank in NY, and then later with another financial entity. I never really worried for money. We always took a trip or two to the Bahamas or to the Caymans, taking the kids – it’s memories they’ll cherish, and so will we. This year we didn’t let all this get us down and went to Delphinos (In Mexico/Cancun).
My older girl was kissed by a dolphin and smooched back… Theyr’e so innocent (shes only
… I really fear for my future and their lives…
The employers like to create two part time jobs, from one full time job. No need to pay benefits.
When I started working, an IRA/Keogh retirement lan was almost part of the salary. So were other employee perks. These days, all that is gone, while the bonuses of these bean counters rise and rise.
How many people need to be laid off to pay a single bonus? For the sake of your 20 million dollar bonuses for the sake of our workers and shareholders, but rather let’s reinvest it to making sure more people aren’t cut from the payrolls. After all, theyy have children and ned to eat too” .. .
Right.. humanity,.. and capitalism are mutually incompatible it seems. gimme gimme gimme.
greedyy bastards. if they knew how much money a year some of us are living on, they spend that much on fuel for their jet for a day..
sigh
im pissed, and i feel theres going to be a revolution in this country if things continue down the status quo..
george and elizabeth parker.
ps my wife has malignant \skin cancer .. its been a very sad and eye opening experience about how our medical system treats it’s patients.
doctors cant make money unless they do a conveyor belt, giving a person at most 5-10 minutes of attention.. why? cuz thats the way the damn system is rigged by the big shots.
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Seawolf 1944 – I agree with what you had to say. Other than the occasional trip, my kids are far from spoiled. My mother spent her life as a Kindergarten teacher, and does a lot of helping out.
You have a very valid point. Infact my mother and father are in their late 80s as well. God grant them another 120 years!
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Seawolf, the expansion of debt is a big part of the problem. But it is not as if young people across the country suddenly got stupid and greedy. Credit card companies intentionally target the young, like loan sharks.What experience had parents had with such predatory lenders? Not much. It had become a thing of the past, to a degree. At least it wasn’t so widespread. When large numbers of young people suddenly start to go in debt, it isn’t because everyone woke up one day and got greedy. It is because loan sharking has became legal and profitable, and has targeted the vulnerable. I’m all for personal responsibility. People shouldn’t run up credit cards. But if we’re going to solve this, we need to focus on the personal responsibility of the loan sharks. They’re the source of the problem.
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