S/O: Discouraged Workers - How do they Survive?

[OscarQ]

This was brought up in the unemployment numbers poll and a spin off thread was suggested.

In that thread it seems that most of the discouraged workers are older.

Also, when does SS and Medicare kick in for these folks? 62 for SS and 65 for Medicare?

[Deleted]

Are they the same thing as underemplyed workers?

I have a few friends who have been laid off who never found a full time job again. They make do with part time stuff (like tutoring, subbing, etc.) but they are still looking for full time work.

[NitaX]

VAB - Primarily, I'm interested in your individuals who are approaching retirement age. Someone say 59-60ish who is laid off, and can't find new work. They have some years in the gap before they can qualify for anything.

We're talking about pushing the retirement age even higher. So, if I am laid off at 63 and I can't get my full SS benefit until 67 or hell even 70 if we're going to talk about raising it even higher, what am I to do? Are we creating new classes of people who may fall into poverty?

[ESF]

I think the ones that drop out of the workforce are the ones than can afford to, by virtue of the fact that there's a second wage earner in the house, and the bills are manageable. My father was able to stop looking for work after a couple years of trying because my parents had paid off the mortgage and my mother's job carried all the benefits. I think a good number of the people in their 50s and 60s who are laid off are probably in similar situations, in large part because they bought their homes long before the real estate bubble began.

For others, I think they drop out because they find another opportunity to use to make ends meet. Maybe their adult kid had a kid and needs help raising them, so they move in and be a full time caregiver. Maybe their own parents need round the clock care, so they move in with them, and start doing that.

Many more probably get by doing a lot of under the table work -- child care, day laboring, tutoring, making goods and selling them to neighbors and friends, etc.

For those that can't completely make it while surviving on family and odd jobs, they probably string together enough part time work to hold it together, while downsizing dramatically.

[OscarQ]

VAB - I am not sure if they are included in the unemployment stat. I think they have a different classification (http://www.bls.gov/lau/stalt.htm).

And yes, nitaw, my concern is just that - we are creating a new class of of poverty. IMO it's going to put even more pressure on the families of these older unemployed workers. Now I don't just have to worry about my parents health, I have to worry that they have a roof over their head and food on the table (and I'm speaking generally there - this doesn't keep me up at night presently).

How are we going to evolve as a country to address this new reality?

[pescalita]

I'd be hesitant to make a conclusion based on anecdotes, but I would be interested in the data on people drawing SSI/Medicate early due to unemployment.

I suspect it's only adding to the unsustainable burden on these programs and needs to be considered in reform.

I also suspect the kind of reform we truly need will uncover a larger unemployment/economy problem.

[Deleted]

Sept 7, 2012 12:23:35 GMT -5 pescalita said:

I'd be hesitant to make a conclusion based on anecdotes, but I would be interested in the data on people drawing SSI/Medicate early due to unemployment.

I suspect it's only adding to the unsustainable burden on these programs and needs to be considered in reform.

I also suspect the kind of reform we truly need will uncover a larger unemployment/economy problem.

My father took earlier retirement from AIG in 2006. He's had a couple jobs since then, but every time the company goes out of business. He started collecting SS at 62 and has a couple part-time jobs, but he's not in the best of health and his job is physically demanding (executive chef), he doesn't have the speed he once did.

[Michelle]

This is actually on the EEOC's radar for age discrimination.
Claims based on age and disability are disproportionately on the rise.