Friday, January 30, 2015 08:59am
North Adams, MA now: 28 °   
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.


Tags: unemployment, nobel prize      
News Headlines
Williamstown's Spruces Reuse Committee Seeking Input, Funds
Adams Planning to Sell Old Community Center Building
Pittsfield Implementing New Pavement Management System
MCLA Men Win in Dramatic Fashion; Women Get First League Win
'Mortdecai': Of Moustaches and Men
Clark Art Wagers Homer Masterpiece on Patriot's Win
Adams Selectmen Review Potential Tax, Fee Hikes
Protect Your Online Data With These Tips
New Doctor Joins BMC's Physical Medicine & Rehabilitation Team
BFAIR Sets Family Night Fun at Greylock Bowl


Categories:
Economy (11)
Finance (4)
Marketing (17)
Sales (4)
Archives:
Tags:
Seminar Bigcommerce Measure Search Engine Optimization Massachusetts Berkshire County Berkshire Direct Books Civil Liberties Education Marketing Facebook Public Safety Web Security Ecommerce Unemployment Cnbc Budget Seo Williamstown Cash Flow Analysis Chamber Of Commerce Advertising Security Election Survey Economy Financials Deficit Social Media Entrepreneur Sales Nobel Prize Small Business Marketing Custom Business Solutions
Popular Entries:
JC Penney and "black hat" SEO
Why does "Tea Party" have to equal "Right Wing" or "extremist"?
Easier and easier
Holy cow!
Nobel Prize in Economics Awarded for Theory on Why Unemployment Remains So High
What will the Berkshires look like in 20 or 25 years?
Chamber Seminar: Email Marketing
Is anyone else feeling this way?
Leadership
That didn't take long
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
Alpine Ski
Multiple teams at Slalom, Bousquet
Hockey: Mt Everett vs...
The Wahconah hockey team defeated Mount Everett, 3-2,...
Berkshire County UCP Telethon
United Cerebral Palsy of Berkshire County held its 52nd and...
Girls BB: Athol vs Hoosac...
McKenzie Robinson dished out nine assists to help the...
Swimming: Wahconah vs St....
Liz Bernardy won the 100-yard freestyle and 200 individual...
Boys BB: Drury vs Hoosac...
Friday night basketball, Drury boys win over Hoosac Valley...
Girls BB: Lee vs Mount...
Barrett scored a game-high 27 points in Thursday's 57-44...
Boys BB: Smith Academy vs...
The Pittsfield boys' basketball team defeated Smitch...
North Adams Chamber @...
The North Adams Chamber of Commerce held its first...
Hockey: St Mary's vs Wahconah
The Wahconah hockey team defeated St. Mary's Wednesday...
Berkshire Chamber @GFCU
Berkshire Chamber of Commerce held its January networking...
Boys BB: Wahconah vs Drury
The Wahconah boys basketball team was able to pull away and...
Boys BB: Hoosac Valley vs...
Jerry McDonough scored 14 points and went 4-for-6 at the...
Girls BB: Wahconah vs Lenox
The Wahconah girls basketball team got back on track with a...
Girls BB: Hoosac Valley vs Mt...
Hoosac used 25 points and 11 rebounds from Emily Rosse to...
Co-ed XC Skiing
The Mount Greylock cross country ski team had the home...
Alpine Ski
Multiple teams at Slalom, Bousquet
Hockey: Mt Everett vs...
The Wahconah hockey team defeated Mount Everett, 3-2,...
Berkshire County UCP Telethon
United Cerebral Palsy of Berkshire County held its 52nd and...
Girls BB: Athol vs Hoosac...
McKenzie Robinson dished out nine assists to help the...
Swimming: Wahconah vs St....
Liz Bernardy won the 100-yard freestyle and 200 individual...
| 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