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July 2, 2009 9:46 PM

Market Tough for Older Workers Post-Layoff

By
CBSNews
(AP)  Like many unemployed older workers, 64-year old Allan Kellum fears his age has made it harder to find a new job. At a recent job fair, Kellum expressed interest in a supervisory role coordinating an international health assistance program. A recruiter set him straight: "The people applying for that are young."

So now Kellum, who lives in McLean, Va., takes no chances. He's deleted his college graduation date from his resume and reduced the number of years it covers. He's hoping that will help move his resume past any screeners who would be put off by his age.

Kellum, who's been out of work since January, may be right to be concerned. Despite their years of experience, out-of-work older people are finding it harder than other adults to find new jobs. And attempts to appear younger on resumes and in person - some are even taking Botox injections - may be no match for the squeeze this recession is putting on employers.

Older workers have always found it harder than others to land a new job after a layoff. In part, that's because many employers assume they're more expensive or won't stay long in jobs that pay less than they've earned previously.

But this job market has been especially frustrating for them. The Labor Department said Thursday that as of June, unemployed workers 55 or older were jobless an average of nearly 30 weeks, compared with about 21 weeks for those under 55. That gap has widened during the recession: In 2006, it averaged only six weeks.

And the jobless rate for those 55 and older rose to 7 percent in June, the highest for that age group on records dating to 1948.

"This recession seems to be a little bit different" because of the "unusually large increase" in unemployment among older workers, said Richard Johnson, a senior fellow at the Urban Institute and expert on retirement issues.

Now, many older workers are taking steps similar to Kellum's, to try to minimize any role their age might play in hiring decisions. Resume-tinkering is among the most common strategies.

But some go much further.

Dozens of people showed up at a spa in Arlington, Va., in June after it promised free Botox for up to 50 unemployed people. Customers had to display a termination letter or unemployment check to receive treatment.

Mari Negron, 49, a struggling real estate agent in Arlington, Va., looking for new work, said she thinks the treatment will help her job search.

"I look refreshed," she said, now that a worry line between her eyebrows is gone.

To avoid appearing out of touch, others are using their time between jobs to become familiar with the latest technologies and social networking sites. Sharon Armstrong, a career consultant in Washington, D.C., urged one client fearful of seeming too old to discuss her use of Twitter and Facebook during job interviews.

And she endorses the idea of keeping certain dates off resumes.

"I don't think anyone needs to know when you graduated from college," she said. "Don't give people reasons to discriminate against you."

Once at the interview stage, Armstrong urges clients to prepare for questions like, "Aren't you overqualified?" Older job seekers say they hear that frequently. Armstrong suggests they show enthusiasm for the job and make sure not to seem to be applying out of desperation. AARP also urges older job hunters to stress their skills and achievements - not their years of experience.

Experts say some employers may be reluctant to hire people they assume are less flexible, more expensive or less agile with technology. Or they fear these workers wouldn't stay long in jobs that pay less than what they earned before, said Deborah Russell, director of workforce issues at AARP.

Such concerns "suggest age discrimination might be playing a role," said Johnson, the Urban Institute fellow. "There is certainly evidence that suggests that employers are reluctant to hire older workers."

Complaints of age bias to the Equal Employment Opportunity Commission jumped 29 percent to 24,852 in the year that ended in September, the most recent 12-month period for which figures are available. That's the highest such total on records dating back 16 years. The number of such complaints has continued at a high pace this year, the EEOC said.

Tina Lurie, 49, a Washington, D.C.-based broadcasting technician who was laid off in January, doesn't respond to job listings that note, "Great for recent college graduate," even if the job sounds like a good fit. Those employers, Lurie said, are unlikely to value her 25 years' experience.

Companies are now more likely to make permanent job cuts than in previous recessions, economists say. Industries from autos to financial services won't soon return to their pre-recession employment levels. That shift hurts older workers more, because skills and experience they amassed over many years in one industry are often not relevant to another.

What's more, the severity of the recession has kept more older Americans working past the age when they hoped to retire - or pulled them back into the labor force after they had left. Their 401(k)s have lost years of accumulated savings. Their home equity has shrunk. So older people are now more likely to want to keep working, even after a layoff.

During the 1981-82 recession, older workers were more likely to have pensions that enabled them to take early retirement if they were laid off, Johnson said.

Rapid changes in workplace technology may be another factor, Johnson said. Some employers fear older workers can't keep pace.

Gregg Cygan, a 60-year old graphics consultant based near Chicago, has decades of experience with technology and was a charter member of AOL's e-mail service. Yet he said some people consider his AOL.com e-mail address out of step.

"They only think you're hip if you have a Gmail account," Cygan said, referring to Google's e-mail service.

Job counselors say they remind older workers that networking is even more crucial for them than for younger job-seekers, because their resumes are sometimes undervalued.

Patricia McNally, 58, is following that advice: She's using Web sites such as LinkedIn and Facebook. Yet one of her most effective tools is decidedly low-tech: her dog, Lola.

After being laid off from a marketing job in Washington, D.C., in December, McNally decided she could no longer afford to pay her dog-walker. Still, the dog-walker forwarded her resume to a communications start-up company. That led to an interview, and while the company isn't yet hiring, McNally thinks she's gained a foothold there.

"You never know where your networking's going to come from," she said.

For his part, Cygan refuses to make any concessions to his age.

"I am who I am," he said.

Cygan's been told many times that he's overqualified for jobs he's applied for. Now, he has a ready reply:

"If you ever replace the head of the department, then get in touch with me," he said.

AP
Add a Comment See all 42 Comments
by get_down July 4, 2009 10:55 PM EDT
Coming from being Baby-boomer generation, after working more than 25 years, I've decided to retire. I suppose that I was lucky to have pension + personal saving + SS benefits - I don't foresee any financial hardship in the short term near future. After I informed my manger about my willing to retire decision - all he asked was "Are you sure?" and I replied "Yes Sir". Heck - I can't wait to retire. My plan for after retirement has all been planed out - baby-sitting my Grand-kid, doing house-choirs, walking in the park with my Grand-kid as soon as she's able to, watching a couple of movies now and then - isn't life grand? God bless everyone!
Reply to this comment
by rushlimpdrug July 4, 2009 1:40 PM EDT
I'd like to know what Obama has solved since taking office.
Reply to this comment
by u-r-right July 4, 2009 11:02 PM EDT
It has all been family oriented, HIS family that is. Which kind of dog to buy, where to take Michelle out to dinner, etc
by longtree-2009 July 4, 2009 4:33 AM EDT
employers are onto the many ways, the many tricks, people use to get employed from resume padding to hiding their age. if dates are missing, one can assume it is an older individual applying for a position. a younger applicant will not hide dates. it takes more than botox on the face to hide your age. employers are not stupid. the one mistake employers make is in not doing background checks for anyone who presents as possibly a qualified candidate whether young or old.
Reply to this comment
by 1notrub11 July 4, 2009 4:48 PM EDT
Interesting comments, of little value.
No one suggested that employers are stupid and I, for one, have never "hidden" my experience on a resume. Other than criminal actions or drug use, a background check, as you put it, will turn up what? Certainly if you are doing a check to determine the candidate's particular age, you are breaking the law I believe. And background checks usually do nothing to determine a candidate's actual qualifications.
Mostly they hire young workers under the assumption that they will save money (benefits, salary, etc.), failing to recognize the corporate memory and potential next generation training experience as it walks out the door, post dismissal. It's a generally stupid way to run a railroad. And now that they have done that, they have increased the burden on the support system going forward in the form of social security, medicare and other national benefits programs.
They are smart, all right.
by darthcheney345 July 4, 2009 1:15 AM EDT
And what is Obama doing to solve this problem?

NOTHING.

Because everybody wants to talk about Michael Jackson and Sarah Palin.

Obama needs more tabloid stories to divert attention from his utter failure.
Reply to this comment
by bajajohn1 July 3, 2009 2:12 PM EDT
Experience and reliability should count. Older workers are more experienced and more reliable. Older workers have more health issues too, and that may be one reason there is a hesitation to hire them. How sad.
Reply to this comment
by darthcheney345 July 4, 2009 12:34 AM EDT
As I posted above, the high cost of providing health care benefits for dependents is a major cost incentive to avoid and discard older employees.

This is the best reason for a national health care plan that eliminates the employer's cost for health care benefits.
by docpeter1953 July 3, 2009 11:42 AM EDT
From the above article, "Kellum expressed interest in a supervisory role coordinating an international health assistance program. A recruiter set him straight: "The people applying for that are young."
______________________________

Excuse me, what did you say your name was again? Do you have a business card?

This is what will be done prior to me filing an age discrimination cause against the recruiter and the company.
Reply to this comment
by rushlimpdrug July 3, 2009 11:17 AM EDT
Of course politicians have no clue about any of this
as they have no clue about the drain of jobs from
American born citizens.
Hire more foreign born professionals and ignore educating
American born citizens.
It is MUCH easier to come in as a foreigner to take a job
than it is for an AMERICAN born citizen to get a professional
job - and their are many excuses to do it.

Good luck to us ALL.
Reply to this comment
by darthcheney345 July 4, 2009 12:19 AM EDT
Yes, for some reason nobody has told them yet.

You'd think they'd read the news once in a while.
by darthcheney345 July 3, 2009 11:16 AM EDT
HAD ENOUGH YET, OBAMABOTS???

The stock market dropped 220 POINTS yesterday.

The market has now dropped back to where it OPENED on the morning of Jan 20.

IT IS NOW JULY.

ZERO IMPROVEMENT IN
Reply to this comment
by Floretta52 July 3, 2009 12:10 PM EDT
Hey, darth - on the last full year of YOUR watch (2008), the Dow plummeted from 13043 to 8776 points, a loss of a third. Remember the stomach-churning days of 400-500 point drops?? People who live in glass houses shouldn't throw stones, bub.
by darthcheney345 July 3, 2009 7:53 PM EDT
As you just admit, the Dow reached its all-time high of 14,000 on Bush's watch.

Obviously his policies were working, until the market lost confidence when the Republicans lost their majority in Congress.

Do the math. Obama can't hold a candle to Bush.

Obama is making Bush look good.
by jschmidt27 July 3, 2009 9:14 AM EDT
For older workers, like myself, I would suggest going the consultant route if you can. Companies will be more likely to hire them until they're sure the economy is back on their feet. Plus it gives employers a shot at what you can do. You have 18 months of Cobra, maybe $12k per year for a family, that you can use to bridge the health care gap. If you go with a consulting firm, they will have insurance you can pick up maybe at full cost, and they will pay the employer part of SS. All situations are different but this is an alternative instead of going out on your own. Networking is the key. Small businesses are better to work for than large ones which often have fixed HR requirements that older person has trouble getting past. If you go from a small, mid size business to a very large company it can be a culture shock. Establish what pay you can survive on and go after that or slightly hire. But it is difficult to take a 30% or more drop from what you are making. Good luck to the job hunters and bravo to all the new small businesses. I hope you can survive with the tax hikes on businesses that will be coming. As the Dems in CT say, if you don't make a profit you don't have to pay the 25% increase in business taxes.
Reply to this comment
by 1notrub11 July 3, 2009 9:27 AM EDT
This is the approach I have taken because, after 18 months, nothing else appears likely. The closer you are to average "retirement" age the more likely you are to experience the issue of not being able to re-engage. Worse, the longer you are out, the more toward the rear of the line you appear to be.
Cobra is helpful, albeit expensive, and based on your employers previous programs unless you choose otherwise. Problem: if your former employer folds you may have a problem there and have to go independent. It is a mess.
What you say about dealing with re-engagement is true and I sincerely hope that all the small businesses out there, that are the bread and butter of our society, make it. With the tax hikes that are coming, it will be more difficult to make a profit, but I think a lot of consumers will do their best to help them in the current environment. I know we will.
by whitemale08 July 3, 2009 8:08 AM EDT
You can thank Bush/Paulson/Obama/Geitner for bailing out Wall Street/City of London instead of putting 14.8 trilllion into long-term projects this country needs to rebuild our de-industrialized economy.
Reply to this comment
by bajajohn1 July 3, 2009 2:16 PM EDT
If Obama would have put 14.8 trillion into long-term projects like you suggest...you would b.i.tch about that as well.
by whitemale08 July 3, 2009 6:19 PM EDT
No I would not.

We would all have productive manufacturing jobs building nuclear power plants and making high speed mag-lev trains.

I used to support Obama because he promised to imitate FDR-style policies but instead wasted our precious tax money on bailing out toxic gambling bets or worthless derivatives and credit-default swaps.
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