Sunday, May 03, 2015 07:54am
North Adams, MA now: 41 °   
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
Adams' Meczywor Homers for MCLA to Lift Blazers to Title Game
Local Man Rides Bike Across North America
BVB Launches 'Tourism Matters' Social Media Campaign
Adams' Meczywor Scores Winning Run for MCLA in Playoff Opener
Tourist Booth Volunteers Sought in North Adams
McCann Tech's Fuller Signs to Play Soccer at St. Rose
Cultural Pittsfield This Week: May 1-7
'Ugh': Lanesborough Wants Postal Service to Add 3 Letters
Kimball Farms Puts Evacuation Plans To The Test In Mock Event
Adams Town Meeting Members OK Rail Trail, Power Articles


Categories:
Economy (11)
Finance (4)
Marketing (17)
Sales (4)
Archives:
Tags:
Cnbc Chamber Of Commerce Election Books Small Business Marketing Marketing Massachusetts Budget Bigcommerce Public Safety Economy Measure Survey Custom Business Solutions Financials Security Social Media Cash Flow Analysis Search Engine Optimization Deficit Seminar Nobel Prize Berkshire County Ecommerce Berkshire Direct Unemployment Entrepreneur Web Security Civil Liberties Facebook Sales Advertising Education Seo Williamstown
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
Chamber Seminar: Email Marketing
What will the Berkshires look like in 20 or 25 years?
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
Humane Race 2015
Runners and walkers unaccompanied by dogs participated in...
Community Day Of Service 2015
Massachusetts College of Liberal Arts students and...
SB: Drury at Pittsfield
Allie Hunt went 2-for-2 with a triple and a sacrifice fly...
SB: Mt Greylock at McCann
Miranda Voller went 5-for-5 with a pair of triples to lead...
Baseball: HV at Pittsfield
Nassif struck out seven and allowed no hits in a 19-0-...
Lacrosse: HV at Mt Greylock
Liam Chenail scored five goals and added an assist to lead...
SB: Wahconah at Taconic
Taylor Farley hit a triple for the Wachonah softball team...
Baseball: Westfield at...
Westfield won over Taconic 4-0 Monday afternoon.
Baseball: Drury at Lenox
Logan Rumbolt and Kirby Bryce led the Drury baseball team...
Baseball: Westfield Voc @...
The McCann Tech baseball team hit their way to a 8-0 win...
SB: Mt Everett @ Lenox
The final score was Mount Everett 15 and Lenox 3
Berkshire County Invitational...
The boys 4-by-800 meter relay, a 3200-meter battle that...
SB: Mt Greylock @ Drury
The Drury softball team earned its first win of the season...
Touch A Truck 2015
Little kids got to play with big trucks - and school buses,...
Baseball: PHS @ Taconic
Fick finished with two strikeouts while allowing six hits...
Lacrosse: Monument @...
Sean Baruch scored four goals to lead the Pittsfield boys...
Humane Race 2015
Runners and walkers unaccompanied by dogs participated in...
Community Day Of Service 2015
Massachusetts College of Liberal Arts students and...
SB: Drury at Pittsfield
Allie Hunt went 2-for-2 with a triple and a sacrifice fly...
SB: Mt Greylock at McCann
Miranda Voller went 5-for-5 with a pair of triples to lead...
Baseball: HV at Pittsfield
Nassif struck out seven and allowed no hits in a 19-0-...
| 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