Squared Away Blog

Self-employed workers who are 50 and older fall into a hierarchy of sorts, a new study finds. The largest group is the 75 percent who work independently in jobs like freelancer and gig worker. Their average earnings are low – $18,000 a year – and they are more likely to be women or Hispanics. The other 25 percent of the self-employed older workers are primarily white men and are evenly divided between business owners and managers who work on a contract basis. These individuals tend to be doctors, lawyers, or executives in industries ranging from finance and construction to retail. To get a better handle on who is choosing self-employment and why, University of Michigan researcher Joelle Abramowitz analyzed 2016…

The COVID-19 recession demonstrates an axiom of economics. Black unemployment always exceeds the rate for whites, the spikes are higher in recessions, and, in a recovery, employment recovers more slowly. A record number of Black Americans were employed in 2019. But when the economy seized up in the spring, their unemployment rate soared to 17 percent, before floating down to a still-high 12.1 percent in September.  Meanwhile, the white unemployment rate dropped in half, to 7 percent. The much higher peaks in the unemployment rate for Blacks than whites and the slower recovery are baked into the economy. This phenomenon occurred during the “jobless recovery” from the 2001 downturn. When the economy had finally restored all of the jobs lost…

Sales and rentals of recreational vehicles have skyrocketed during the pandemic as people working remotely use their newfound freedom to move their workplaces to the great outdoors. Outdoorsy – the Airbnb of recreational vehicles (RVs) – reports that 40 percent of its new rental customers are under age 40. But long before younger adults hit the road, thousands of baby boomers were buying RVs to roam the country in search of work. Rather than seeking psychological relief from COVID, as younger workers are doing, the boomers – some retired and some unemployed – are looking for financial security. In this excellent PBS NewsHour segment, Paul Solman talked to boomers who park their RVs at campsites near whatever seasonal jobs they…

Many baby boomers retire the conventional way – by leaving their career jobs. For the others, the first step in retiring involves stopping over in a different job than they’ve held for years. A sketch of the older workers who transition to post-career jobs – and their reasons for doing so – emerges from a survey of a fairly elite group of mostly college-educated professionals: clients of the Vanguard investment company. They made the job transitions for a variety of reasons.  More than half of them either had initially retired but decided to go back to work or were forced out of a long-term job by a layoff, firing, or business closure. However, Vanguard’s clients are apparently in good health,…

It’s not unusual for workers who grew up in lower-income households to help their parents out financially. But a new study uncovers a twist in this familiar story: once the parents are old enough to collect Social Security, the money flowing from adult child to parent slows down. And when this occurs, the offspring are able to start saving money. Social Security, by reducing disadvantaged parents’ reliance on their children, “may be able to interrupt the cycle of poverty between generations,” Howard University researcher Andria Smythe concluded from her analysis. To chart changes over time in cash transfers within families, Smythe followed U.S. households’ finances between 1999 and 2017 using survey data from the Panel Study of Income Dynamics. S…

In more than 30 states, completing a personal finance course is required for a high school degree. The requirement started gaining traction around the country in 2005, despite the long-running debate about whether the courses even work. A new study gets at whether high school instruction is effective by asking a fresh question: do the finance classes make people feel better about their situation – and feeling better about one’s finances is an indication things are, in fact, improving. This departs from past studies focused on objective measures like credit scores and past-due loans. The researchers find that high school courses have generally been a positive development: adults who grew up in states that require the courses do, in fact,…

When Millennials’ unemployment rate spiked during the Great Recession, millions of them alleviated their financial problems by moving in with their parents. Now the coronavirus is chasing Generation Z back home. Some 2.6 million adults, ages 18 to 29, who had been living on their own moved back home between February and July, the Pew Research Center reports. This pushed up the share of young adults living with one or both parents to 52 percent, which exceeds the rate reached during the Great Depression. Pew’s analysis included some Millennials. But members of the younger Generation Z account for the vast majority – more than 2 million – of the young adults who’ve returned to the financial security of their parents’…

A danger for working-age people with disabilities is that they become socially isolated, which can cause a further deterioration in their health and ability to function. A good example of this vicious cycle is people with severe arthritis. If joint pain makes walking more difficult, it can limit one’s ability to do things with friends or be out in public, which means more social isolation and less exercise to ease the pain’s disabling effects. A new Mathematica study connects this phenomenon to the sharp rise in the share of Social Security disability awards going to people with arthritis, back pain, and other musculoskeletal conditions. Between 1997 and 2017, there was a slight increase, to 13.4 percent, in the share of…

Squared Away has featured numerous articles this year – the 30th anniversary of the Americans with Disabilities Act – about the challenges that people with disabilities must deal with. One in four adults in this country has some type of disability. What becomes clear when looking back at this collection of articles is the importance of ensuring that those who are capable of working get the support they need to overcome their unique challenges. Employment rates, which are lower for people with disabilities, can be improved greatly if they receive support. One recent blog examined a program to assist people with severe intellectual or learning disabilities. The federal-state Vocational Rehabilitation program supplies coaches who help their clients find appropriate work…

The economy shows some signs of improving. More than 1 million people went back to work last month, pushing the unemployment rate down to 8.4 percent. But housing experts say a sure sign of trouble ahead is the crisis unfolding among the third of U.S. households who are renters. Things can only get worse for them, because so many were already vulnerable prior to the pandemic after many consecutive years of rising rents that strained their budgets. Prior to the pandemic, Harvard’s Joint Center for Housing Studies estimates that more than 40 percent of U.S. renters paid more than 50 percent of their incomes for rent – far more than is affordable for most workers. And these rent-burdened households aren’t confined…

The mix of disabilities for people receiving federal disability insurance has changed in important ways that often reflect trends in the health of the population as a whole. Two disabling conditions that have become a growing share of Social Security’s benefit awards in recent decades are mood disorders and various musculoskeletal problems, which include arthritis and back pain. First, consider mood disorders. They range from depression and bipolar disorder to irritability and seasonal affective disorder, and they can hamper someone’s ability to work. Mirroring the rising share of awards for mood disorders, their prevalence in the population has edged up from 54.6 percent of adults in 1997 to 56.2 percent in 2017, according to a study by Mathematica, a researc…

Jennifer Lee wanted to work until 70 to max out her monthly Social Security checks – at least that was the plan before she was laid off three years ago from a Washington D.C. church. The church’s newly hired pastor “decided he wanted a whole new staff,” she said. “I felt to a degree he was entitled to do that,” she said – except that “he was only eliminating people on the staff who were over 60.” She wasn’t having any luck finding a new job and felt that her only choice was to sign up for Social Security at 63½ to pay her bills. Eventually, Lee, a one-time nurse and medical administrator, landed a nice part-time job as a…