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As temporary workers make up an increasingly larger share of our workforce (it’s not just the front desk anymore) and hold positions at companies for longer periods of time—sometimes for years, I got to wondering what it’s like to be a temp worker. Is it horrible and stressful because there are no benefits and no security? Or is it fun and fancy free with lots of variety and minimal commitment? So I decided to ask. Here is the perspective of one temp worker:

Liz: How long have you been a temp worker?

T.W.: I’ve been a temp worker for years.

Liz: How many temp jobs have you had?

T.W.: I’ve had 2 temp jobs and 5 other interviews for temp positions, but I have spent the majority of my time in one position.

Liz: Do you get benefits? Ever?

T.W.: The staffing company I work for didn’t offer benefits directly. They did recommend a short term coverage plan (180 days at a time, catastrophic coverage only) that I had to pay out-of-pocket.

Liz: What’s the best thing about temp work?

T.W.: The best thing about temping is having a job. Looking for jobs these days can be very depressing. There just isn’t a whole lot out there right now so it’s nice to earn some kind of income in the meantime.

Liz: What’s the worst?

T.W.: There are a lot of things that aren’t great about temping. Lack of benefits, lower pay, status in the company; but I think most temps would say the worst part is the uncertainty that the job brings. At anytime you could be let go. Most of the time the jobs have a defined time period so you are able to plan a little bit, but even then things can change and you can be gone pretty quickly.

Liz: Why did you start temping? Was it more desperation or inspiration?

T.W.: Definitely not inspiration. I was frustrated looking for work and didn’t think I had a lot of options. A friend of mine suggested I give temporary employment a shot, while I was still looking. The temp agency worked really fast for me so I stuck with it for a while. 

Liz: What would you like employers to know—from the temp point of view?

T.W.: Be very upfront with us about the expectations of us and the situation we are in. Don’t sugarcoat future employment status. If there is no chance of full-time employment in the future, make that clear. 

Liz: What about your co-workers in the office(s) where you temp: Any message for them?

T.W.: I think most temps are probably overqualified for the work they are doing. I think the reason someone temps may be a little misunderstood. It’s not like I aspired to be a temporary employee, it just kind of happened. All the other temps I’ve met are really smart and driven people. It’s understandable that there is a stigma to being a temp employee, but the reason I am temping is not because I’m unemployable, I just took a different route to get a foot in the door.

I’ve actually really enjoyed most of my time as a temp. I’ve experienced a lot of different types of work and work environments. I would say, despite the challenges, in a transitional or emergency situation, temporary employment is a great alternative to no employment at all.

• “Unconsumption” describes the now savvy and respectable trend of reducing, reusing, and recycling.
• Fashions are changing faster than ever because clothing is becoming relatively cheaper. In fact, 21^st century clothes are 70% cheaper than the mod outfits of the Sixties. (This was further elaborated on in Plenitude, Juliet B. Schor’s new book, where she talks about ever cheaper clothes and our increasing propensity to buy—and discard—said new clothes. The average American bought 34 pieces of clothing in 1991; in 2007 the average person bought 67 pieces of clothing. That is a 97% increase!)
• More than 80% of undergraduate students want more sustainability and corporate responsibility material in their curriculae. (Business majors are even more adamant.) Attention to sustainability has become an expectation of college students.
• At least half of the estimated 10.6 million privately held firms in the U.S. are owned by women, employing 19.1 million people and generating $2.46 trillion in sales annually.
• Workers under 30 would rather start their own company than advance through the corporate ranks. Most distrust large institutions and believe that jobs don’t provide a secure economic future.

I always learn something new when I pick up The Futurist. And even though I don’t agree with everything they say, I’m never bored.

The demographic changes include the aging of our population (we are going to see large increases in the 55-75 age group in the next 10 years) and very slow growth on the part of the labor force. What this means for the near future:

• More retirees
• Less consumption, more saving
• Slower economic growth
• Higher interest rates
• More uncertainty about the future

In 2020, the number of Minnesotans age 65+ will outnumber school-age kids—this is a huge demographic shift which could lead to some challenging funding priorities between health care (age 65+) and education (ages 5-17). Overlay a $5.8 billion budget gap (expected for Minnesota in 2012-2013) on that challenge and it doesn’t take a crystal ball to see exceptionally rocky roads ahead.

But all is not lost, and according to Stinson, this New Normal plays to Minnesota’s strengths. Education has been the key to Minnesota’s productivity and prosperity, and if we make the right decisions and investments now, they will help us weather—and perhaps even prosper in—the New Normal.

You can view Dr. Stinson’s complete powerpoint or, if you’d rather see and hear the presentation, check out the video.

Quarterly Economic Pulse - April 2010

The most recent edition of the Quarterly Economic Pulse has just been released.

There are glimmers of hope. Unemployment has probably peaked (though all of those discouraged workers out there could re-enter the labor market—which is a good thing—and drive the unemployment rate up a bit further, which is generally viewed as not such a good thing). People are saving more (good for community stability) and they’re paying down their debt (good for individual stability).

But we still have eight unemployed workers for each job opening, poverty is growing in the suburbs even faster than in the central cities, and the suburbs are now home to the lion’s share of low-income people. (See Brookings report for more detail on suburban poverty). Consumer confidence remains low, and will probably stay that way until the job market improves.

Housing sales are increasing, and there are still a lot of foreclosed properties on the market, keeping housing prices low (which also makes housing more affordable). Median sales price for a Twin Cities house in February was $159,000. One in six Minnesotans owe more on their homes than they are worth. One in three Minnesota students are eligible for free or reduced price school lunch.

So, we’re starting to emerge from the recession but we still have a long way to go, and a lot of people will be facing hard times for the foreseeable future.

The fourth quarter 2009 labor market was the least favorable for job seekers during the history of the job vacancy series dating back to fourth quarter 2000.

Here’s what it looks like:

When DEED first started conducting this survey 10 years ago, there were actually more job vacancies than job seekers (nearly two jobs available for each unemployed person).

Other highlights of the report:

• 58% of the vacant jobs are in the seven-county Twin Cities Metro Area.
• 45% of vacant jobs are part time.
• 17% are temporary or seasonal.
• 56% require no education beyond a high school diploma or GED.
• The occupations with the most vacancies are sales, office and administrative support, and healthcare support.
• The median wage (half pay more, half pay less) is $10.86/hour. (Note: A full-time job at $10.86/hour would give you an annual income of $22,589.)

For more information, read the full report. You can also get detailed information for various regions.

Half a million people. In Minnesota. Without health insurance.

That’s up from 7.2% of the population that was uninsured in 2007. Now this might not seem like a huge jump to you, but in terms of people, we’ve gone from about 372,000 uninsured in 2007 to 480,000 in 2009, a 28% increase in the number of people without health insurance.  

So who are all the uninsured?

• The highest rates of uninsurance occur among the young adult population: 22% of the 18 to 24-year-old age group is uninsured, as are 16% of those ages 25 to 34. (In contrast, about 7% of those under age 18 are uninsured.)
• Not surprisingly, the uninsured are more likely to have lower incomes: 18% of those living at or below the federal poverty level are uninsured, as are 17% of those between 100% and 200% of poverty and 12% of those between 200% and 300% of poverty.
• Uninsurance rates are higher for Minnesota’s populations of color, particularly Hispanics (29%), American Indians (19%) and Blacks (16%).
• The uninsured are more likely to live in Greater Minnesota (10.3%) than the Twin Cities Metro Area (8.1%).
• Men (12%) are much more likely to be uninsured than women (6%).
• Nearly three-quarters of the uninsured (71%) are employed.
• Most (61%) are potentially eligible for some sort of public coverage.

Speaking of public coverage, there was an interesting article in the Wall  Street Journal a couple of weeks ago reporting that next year for the first time, government programs will account for more than half of all U.S. health care spending (see chart). By 2020, about 1 in 5 dollars spent in the U.S. will go to healthcare—a proportion far beyond any other industrialized nation (many of which have universal coverage).

Healthcare reform, anyone?

A few highlights from our most recent issue:

• Both local and national unemployment rates remained steady in January at 10% (U.S.) and 7.4% (MN) respectively.
• Lender-mediated home sales averaged $124,000 in the Twin Cities in 2009 compared to $204,000 for traditional home sales.
• The Twin Cities’ housing inventory is down 22% from a year ago.
• Teenagers are experiencing the highest unemployment rates nationally (27%) while women and Asians are experiencing some of the lowest rates (8%).
• Weekly wages declined 1.6% in 2009 when inflation is factored in.
• TCF is ending its “Totally Free Checking” program. More than 1,000,000 accounts that were previously free will be charged a monthly maintenance fee beginning early this year.
• Target Corp. is opening fewer than 10 new stores this year, but is renovating 340 stores already in operation.
• UnitedHealth Group reported fourth quarter profits up 30% and profits for the year up 28%.
• United Way 2-1-1 made nearly 175,000 referrals for basic needs in 2009. More than one-third of these were for either emergency food or emergency shelter.

For more news on the local and national economy, read the full report (including graphics!) here. 

What is the state of your economy? What one issue has had the most impact on you, your family, or your work in the past year? What do you think the State of the Economy will be next year at this time? Let me know, and I’ll post selections of the answers I receive.

Wilkinson and Pickett examine income inequality across 23 countries. (Income inequality is measured in many ways, but one typical measure is to compare the income of the richest 20% of the population to the income of the poorest 20% of the population.) In Japan, Finland, Norway, and Sweden, the richest 20% are about four times as rich as the poorest 20%. At the other end of the spectrum (i.e., the U.S. and Singapore), that is more than doubled, which is to say that the U.S. has very high inequality (only Singapore is worse).

Does it matter? Absolutely, say Wilkinson and Pickett. They tie inequality to many of our major social populations:

If you fail to avoid high inequality, you will need more prisons and more police. You will have to deal with higher rates of mental illness, drug abuse, and every other kind of problem.

Take the example of health and life expectancy. The United States spends more per person ($6,000) on healthcare than any other country. You’d think that would at least put us in the top half for life expectancy, wouldn’t you? But no. In fact, only 3 of the 23 countries have lower life expectancies than the U.S. (those would be Portugal, which spends about $1,800 per person; Denmark, which spends about $2,800 per person; and Ireland, which spends about $2,500 per person). Highest life expectancy goes to Japan, which spends about $2,200 per person. The same pattern holds for infant mortality and teen pregnancy (see chart).

Conclusion? The more equally wealth is distributed in a society, the better the health of that society. They examine social relations, mental health, drug use, life expectancy, violence and homicide rates, obesity, education, teen pregnancy rates, incarceration rates and social mobility. The pattern holds.

Not convinced? They also look at inequality within the United States, and compare many of these same social ills across states, and the same pattern obtains. The authors contend that if the United States could reduce its income inequality to the average of the four most equal countries (Japan, Norway, Sweden, Finland), we would see:

• The proportion of the population feeling they could trust others increase by 75%
• Rates of mental illness drop by two-thirds
• Rates of obesity drop by two-thirds
• Teen birth rates cut in half
• Prison populations reduced by 75%

Now that’s something worth striving for!

Photo by mitikusa

I finished my 2009 books-read list over the weekend—always a fun project. Here are 9 of my favorites from the year:

Sabbath, by Wayne Muller. My favorite book of the year, hands down. This is a book I give reverence to, a book that I found grounding and wise with the occasional slap. Read this if you have many things going in your life and you sometimes feel like you don’t know up from down.

Meltdown: The End of the Age of Greed, by Paul Mason. Read this if you’re looking for a better understanding of how the economic meltdown happened, or feel stupid because you still don’t understand what derivatives are or how they work (a lot of bankers don’t, either). Surprisingly fun and compelling for an economics book.

Agenda for a New Economy, by David C. Korten. Read this if you wonder what our economy might look like if it focused more on Main Street than Wall Street.

Miss Pettigrew Lives for a Day, by Winifred Watson. Read this if you like period pieces and are looking for something gentle. Bonus: Frances McDormand is in the movie version which has one significant difference from the book.

Call Me Ishmael Tonight: A Book of Ghazals, by Agha Shahid Ali. Read this if you have a fondness for ghazals in particular, poetry forms in general, or if you’re simply looking for a seriously good poetry book. 

Listening Below the Noise: A Meditation on the Practice of Silence, by Anne D. LeClaire. Read this book if the idea of an hour of silence makes your heart sing.

Gardening at the Dragon’s Gate, by Wendy Johnson. Read this if you’re interested in food, health, nature, cooking, gardening, organics, environment, zen, mythology, spirituality, sustainability, obesity, local farming, or community-supported agriculture. A multidimensional book that’s hard to categorize. Happy making.

The Language of Baklava, by Diana Abu-Jaber. Read this memoir if you wonder about the torn life of an immigrant—missing the homeland, the sweet pull of memory, but also anticipation and excitement over the challenges and possibilities of a new country. If you prefer fiction, try Abu-Jaber’s Crescent, which I also read this year and liked very much.

Gut Symmetries, by Jeanette Winterson. I love Winterson. Seriously, I think she could publish a book of ampersands and I would probably think it was brilliant. This novel is a blend of physics and romance (with a dash of horror)—what better combination? Read this if you enjoy books where you think you’re probably missing 30% of what the author is saying.

A good year for books. Happy New Year (a tad late) to you and yours, and best wishes for good books in 2010!