Wednesday, July 30, 2014 05:04am
North Adams, MA now: 55 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
Nobel Prize in Economics Awarded for Theory on Why Unemployment Remains So High
By: Allen Jezouit, @BerkshireCountyBusiness On: 06:28AM / Tuesday October 12, 2010
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0
The WSJ reported today that three academic economists have been awarded the Nobel Prize in Economics for their research into the phenomenon of high unemployment even though there is a rise in job openings (Trio Share Economics Prize, WSJ, October 12, 2010). They hypothesized that high unemployment benefits which result in the unemployed spending more time looking is actually better for the economy because it means they find jobs which are a better fit for their skills.
 
Huh? That is probably the most counter-intuitive conclusion I've ever heard in my entire life. One has to wonder if they actually looked at any survey data of unemployed folks. Two data points are not statistically significant, but I know two people who were recently laid off who are eligible to collect the max in MA ($629/week) for something like 70 weeks. Neither have any plans to look for jobs for at least 6 months. One is an avid skier who is going to hit the slopes all winter before starting to look in the spring. The other is relocating to Texas and will start looking once they're settled. Both are looking at their unemployment benefits like an opportunity to take an extended paid vacation.
 
I've been doing some work trying to hire new staff for a local financial services firm. It is amazing to me how difficult it is to find qualified people who actually want to work these days. When people hear they are actually going to have to show some effort in order to earn a decent living (compensation is roughly 50% base, 50% commission with total compensation potential in the $60-$90k range), they are scared away. Part of my role is the initial telephone screening interview. I've had people tell me they've been unemployed for months who hear the job description and say, "Not interested." We had one kid take the job and quit after only 4 days. The employer couldn't be any more candid with people - telling them right up front, "Expect to work 45-50 hours per week, expect to dial the phone 50+ times per day if you are going to be successful." Kid quit after 4 ... FOUR ... days! He's got a finance degree from MCLA, graduated in May'09, and has been working retail part-time as a cashier ever since. What did he think he was going to get for his first finance job? CFO of a F500 company?
 
Don't get me wrong. I know how tough it is to have a job you hate. It sucks. It is so tough to get out of bed in the AM if you hate your job. However, if the alternative was going hungry and homeless, people wouldn't be so picky. As a society, we simply can't afford a system that allows people to be picky. We need a system that allows people to eke by for a few weeks until they can find a full-time job doing something that pays half way decent and a part time job that makes up the difference.
 
Things have changed. Look at home prices. We all wish we could sell our home for what we bought it for, but if you bought a home in 1999-2006, that probably won't happen for years to come. Ditto re: income and lifestyle. If you lost your job during the Great Recession, chances are you will struggle to find a single job that replaces or increases the income. You may need to add a second job in order to approach the same lifestyle. That's just reality.
 
Seems to me, there are jobs out there. It's the effort that's lacking.


Write a comment - 3 Comments       Tags: unemployment, nobel prize      
News Headlines
Williamstown Public Safety Building Committee to Pursue RFP
Weather Service Reports Dalton Hit by Tornado
Mohawk Trail Being Honored at 59th Fall Foliage Parade
Melito Family Reunion in North Adams
Three Berkshires Men Fighting Fires in Northwest
Pittsfield Councilors Favor Opposition to Gas Pipeline
North Adams Housing Agency Reaching Asset Deal With City
Williamstown Town, Fire Discuss Coordinating Annual Meetings
Wilber Off to Strong Start at YMCA Nationals
Berkshire Force Set to Host Softball World Series


Categories:
Economy (11)
Finance (4)
Marketing (17)
Sales (4)
Archives:
Tags:
Financials Facebook Deficit Massachusetts Williamstown Economy Books Seo Civil Liberties Advertising Berkshire County Cash Flow Analysis Berkshire Direct Election Measure Custom Business Solutions Web Security Small Business Marketing Public Safety Education Chamber Of Commerce Bigcommerce Seminar Social Media Cnbc Sales Ecommerce Survey Budget Marketing Unemployment Security Search Engine Optimization Entrepreneur Nobel Prize
Popular Entries:
JC Penney and "black hat" SEO
Why does "Tea Party" have to equal "Right Wing" or "extremist"?
Holy cow!
Easier and easier
Nobel Prize in Economics Awarded for Theory on Why Unemployment Remains So High
What will the Berkshires look like in 20 or 25 years?
Leadership
Chamber Seminar: Email Marketing
Is anyone else feeling this way?
WE HAVE TO BE BETTER, WE LIVE HERE.
Recent Entries:
Chamber Seminar: Email Marketing
That didn't take long
Holy cow!
JC Penney and "black hat" SEO
Easier and easier
Chamber Seminar on eCommerce
Gotta love 2011 so far!
Mass., NY could lose more seats in Congress
The 12 Days of Holiday Revenue Maximization for Your Online Store
5 New Online Services Perfect for Small Businesses


View All
Pittsfield Ethnic Fair 2014
North Street in Pittsfield had a double-dose of block...
LaFesta Baseball 2014
The LaFesta Baseball Exchange, celebrating 24 years, pits...
Adams Polish Picnic 2014
Adams residents enjoyed traditional Polish food and music...
Mingo's Sports Bar & Grill...
Over 50 cars packed into the Mingo's Sports Bar & Grill...
BYP Networking at Naumkeag
The Berkshire Young Professionals met at the historic...
Pittsfield Shakespeare...
Pittsfield's Shakespeare in the Park free performances at...
Lanesborough Kids Fire Camp...
Lanesborough Fire Department held its annual Kids Fire Camp...
Lanesborough Fire Drill
The Lanesborough Fire Department trains on basement fires...
Pittsfield Polish Picnic
Crowds lined up for golabki and kapusta at the annual...
North Adams Kids Emergency...
The North Adams 21st Century Community Learning Center...
Gather-in Festival 2014
The 42nd annual Gather-In festival was held at Pitt Park in...
BFAIR Mini-Golf Fundraiser
Berkshire Family and Individual Resources held its annual...
Lanesborough Seeds of Harmony...
Bradly Farm in...
Hinsdale Block Party
The Hinsdale Fire Department hosted its annual block party...
Arrowhead Country Craft Fair
Arrowhead, Herman Melville's home in Pittsfield, is hosting...
Pittsfield 3rd Thursday July...
Shakespeare was the theme for this month's 3rd Thursday...
Pittsfield Ethnic Fair 2014
North Street in Pittsfield had a double-dose of block...
LaFesta Baseball 2014
The LaFesta Baseball Exchange, celebrating 24 years, pits...
Adams Polish Picnic 2014
Adams residents enjoyed traditional Polish food and music...
Mingo's Sports Bar & Grill...
Over 50 cars packed into the Mingo's Sports Bar & Grill...
BYP Networking at Naumkeag
The Berkshire Young Professionals met at the historic...
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved