Unemployment rates not the same for everyone (small business, accountant, taxes)

[jimhcom]

Higher income workers and government workers are not suffering from the recession at anywhere near the degree that lower income private sector workers are. No wonder some people deny the severity of the recession, it does not affect them. Workers with salaries of $100k or more have unemployment in the 4% range.
Contrast that with the unemployment rate of the lowest group, which had annual household incomes of $12,499 or less. The unemployment rate of that group during the fourth quarter of last year was a staggering 30.8 percent. That's more than five points higher than the overall jobless rate at the height of the Depression.

Government job losses are less that 4% compared with 9.7% for the private sector.

[evilnewbie]

Probably cause the people with higher salaries are the ones who need people of lower salaries to work for them... every time you lose a higher salary, you will probably lose 2-3 lower salary employees with it and compound that with workers who support that group... why would anyone expect the unemployment rate to be the same for every salary group? For instance if a law office employing 6 people goes out of business, the one higher salary + 6 lower salary workers are unemployed... why is that surprising?

[user_id]

Originally Posted by evilnewbie

Probably cause the people with higher salaries are the ones who need people of lower salaries to work for them...

No, the vast majority of folks making $100k and above work for someone else. The primary issue is skill and education, those on the lower 25% or so of the income scale have few skills/education and they are all competing for the same jobs (those that don't require much skill/education).

[slackjaw]

Originally Posted by jimhcom

Contrast that with the unemployment rate of the lowest group, which had annual household incomes of $12,499 or less. The unemployment rate of that group during the fourth quarter of last year was a staggering 30.8 percent.

This might be a very misleading statistic.

If I made okay money but lost my job so went unemployed for much of the year (like many) could I fall into this category?

[debtmonger]

There's no doubt that lower paid workers have taken the biggest hit during the recession. They usually do... Here's the other part of the equation... How many people on unemployment can't afford to accept certain jobs, because they make more on unemployment? We need a jobs program, tied to unemployment compensation. No work, no unemployment. Paying people to sit home and watch Oprah is a little crazy...

[LeavingMA]

I've also seen many people with PHD's and MBA's have to "dumb" down their resumes because no employer wants to pay them what they used to be making. Many people with a bunch of degrees also think they should be making more so they hold out for the more expensive jobs. The best part many people without PHD's and MBA's can do their job just as well and for less.

[killer2021]

Also has to do with the minimum wage laws. Anyone who can't produce enough value for the minimum wage will simply be unemployed. I won't hire someone who only gives me 4$/hr in value when I pay the person 8$/hr.

[jimhcom]

Originally Posted by killer2021

Also has to do with the minimum wage laws. Anyone who can't produce enough value for the minimum wage will simply be unemployed. I won't hire someone who only gives me 4$/hr in value when I pay the person 8$/hr.

This is true, minimum wage is another "down the rabbit hole" liberal program which sounds good to people who do not really understand the ramifications of what it does to small business and and the entry level job market. Then their solution to the problems created by a short sighted program is to keep extending unemployment, running up massive government deficits, and raising taxes on the people who are still working further damaging the economy.

[Randomdude]

Originally Posted by LeavingMA

I've also seen many people with PHD's and MBA's have to "dumb" down their resumes because no employer wants to pay them what they used to be making. Many people with a bunch of degrees also think they should be making more so they hold out for the more expensive jobs. The best part many people without PHD's and MBA's can do their job just as well and for less.

There is not much more an MBA teaches you then an undergrad finance or accounting major has. Seriously, take a look at the curriculum. About the first year of any MBA program is spent taking 500 level refresher courses of 300-400 level material. The second year of an MBA, if its applied in something, like accounting, adds very little on to what an undergrad accounting degree has, certainly nothing that cant be learned in a few years at a big 4 or as a mid level corporate accountant at a medium to large firm.

Most of the demand for an MBA is not the MBA in itself, Id imagine its simply because for the salary they offer for degrees like that, they can demand whatever qualifications they want.

[Randomdude]

Originally Posted by killer2021

Also has to do with the minimum wage laws. Anyone who can't produce enough value for the minimum wage will simply be unemployed. I won't hire someone who only gives me 4$/hr in value when I pay the person 8$/hr.

Yet you will gladly pay them $8 an hour when they give you $16 in value, which is the case with most low wage jobs.