Financial Challenges Still Exist For Millions Of Americans

The numbers of people trying to survive through the current economic meltdown are overwhelming. There are nearly 14 million unemployed people in U.S. About nine million people are looking for a full-time job, but are only able to find part-time work. Approximately, 2.5 million people would like to get some sort of work, but they are not even trying to get one, mainly because they are too dejected.

Increasing number of foreclosed homes is one of the major impacts of this great downturn. As per the Census Bureau, which started recording the number of people living in poverty 52 years ago, the poverty rate today is the highest.

Rutgers University’s John J Heldrich Center for Workforce Development started studying a faction of unemployed U.S. citizens to find out how they manage through the financial crisis over time. Not unexpectedly, the findings of the latest review are quite miserable. Many of them have expended the unemployment benefits, and they now believe that their current lower living standards will last for a lifetime. Members of the surveyed group who have got new jobs are getting pay that is considerably less than what they were used to receive on earlier job.

This substantial reduction in the pays has forced Americans to make some drastic changes in their daily lives. Till M. von Watcher, Associate Professor of Economics at Columbia University, studies the impact of interruption in employment on the long-term earnings, health and job stability of the people. According to him, researchers can get a broad view of the effects of losing a job. As per the research, the mortality rates among the high-seniority male workers can substantially increase immediately after an employment loss.

Social scientists find it quite difficult to gauge the impact of this downturn on the lives of people who continue to deal with their financial constraints. Carl E. Van Horn, Founding Director of the Heldrich Center for Workforce Development at Rutgers, while observing a faction of unemployed Americans remarked that the first thing people have to do is to change their living standards. They have to shun the things they like to do and then abstain from things they have to do. He stated that people under financial duress stop taking vacations and cut back their spending on entertainment. They stop seeing their doctors or move in with their family members. They are forced to sell their belongings and borrow money from others, often they find themselves having to live on cash advance loans to manage their cash from week to week. According to him, this readjustment is quite painful and people are desperate to find a lifeline. He added that it is unusual to find a large faction of unemployed people who have exhausted their benefits.

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