Archive for May, 2009

Good Careers in a Bad Economy, Part 3

A career in environmental “green” technology? Scientific research? Health care? Education? Transportation? Construction?

America’s deep economic recession is making an impact on career plans for teenagers and young adults. So is the $787 billion American Recovery and Reinvestment Act, better known as the economic stimulus package, that President Barack Obama signed in February.

The recession, with official unemployment at 8.1 percent at the end of February 2009, is causing many young people to pursue recession-proof careers. They don’t want to fruitlessly study or train for jobs that will scarcely exist in what is shaping up to be a new economy. They want to go where the action is.

As a result, many young people are looking at the priorities established in the economic stimulus package as laid out on Recovery.gov, the Web site that Obama’s team established as part of its promise for an open and public process.

Stimulus Plan is Temporary and Limited

Young people should exercise caution in placing too much stock in the stimulus package for guidance. Some of the stimulus priorities, such as green energy investment, indeed reflect long-term priorities — Obama has pledged $150 billion beyond the initial stimulus over a 10-year span. But other stimulus money, such as for roads and bridges and housing, may represent short-term fixes that will not endure.

Those who are building Recovery.com acknowledge on the site that they are engaged in a work in progress. There really are not a whole lot of specifics.

For example, the primary Obama pledge is to “create or save” 3.5 million jobs during the next few years, a number that gradually has risen from 2.5 million without much explanation. There is no breakdown to indicate how many jobs will be created, as opposed to how many will be saved.

Furthermore, the Web site does not count the numbers of jobs to be created or saved in specific career areas such as how many jobs in energy, how many in housing, etc. The lone breakdown is a map that shows the total number of jobs estimated for each state.

Not all Stimulus Money Goes for Jobs

Good Careers in a Bad Economy
Part 1: Graduating in a Recession
Part 2: According to the March 2009 Bureau of Labor Statistics
Part 3: Potential Careers Arising from the Stimulus Bill
Part 4: Career Forecast: Look for Overlapping Opportunities
Part 5: Career Planning: The More Things Change, the More they Stay the Same

A young person considering a job in health care will enter a field that is generally considered recession-proof. After all, people aren’t going to stop being sick and injured, and shortages are reported, especially a shortage of nurses.

Someone considering the health professions may feel encouraged to note that the stimulus plan contains $147.2 billion for health care. However, little of that money will go toward creating new health care jobs. A chunk of $86.6 billion alone is targeted to helping cash-strapped states catch up with their Medicaid reimbursements.

A career in education often is described as recession-proof, but there still is cause for doubt. The New York Times recently reported that Education Secretary Arne Duncan will use the lion’s share of $100 billion from the stimulus bill to prevent “hundreds of thousands of job losses in schools that had been projected for the fall because of growing state budget deficits caused by a steep drop in tax revenues.” Therefore, a young person considering career plans in education may ask what’s in store for the years ahead, when stimulus payments may not be available.

In the same vein, a project to modernize the nation’s electrical grid may be finished before today’s students and trainees enter the job market. The same goes for road and bridge projects, and for housing improvements.

On the other hand, good jobs could arrive in unexpected places. Financial services may seem a dead horse at this point, but at the point when recovery may occur, financial services could return to high demand.

Sound confusing? The Web site HRworld.com recommends “multifaceted” career plans: “If you don’t put all of your eggs in one basket … numerous failures have to happen before you’re really in trouble.”

Michael Thompson

Good Careers in a Bad Economy, Part 2

Young adults who pursue good careers in a bad economy will encounter not only skeptics, but also cynical humorists.

U.S. News & World Report, for example, placed “federal judge” at the end of a list of the best recession-proof careers. The joke is that federal judges, unlike their state and local peers, are appointed for life.

Then there’s the occasionally morbid “Top 25 Careers to Pursue in a Recession” on HRworld.com. These include careers in casino management, because desperate people will gamble more often, and in distribution and sales of alcohol, because unhappy people will drink more often. Also listed are debt collection and bankruptcy law, for obvious reasons.

For young adults facing the tightest job market since the Great Depression, these wisecracks may not seem so funny.

But chin up. Teens and young adults still should pursue their ideal dream career. If that dream career is also a recession-proof career, all the better. If not, a recession-proof career can offer security in case a dream career becomes a dream deferred.

Bureau of Labor Statistics Tells the Story

The U.S. Bureau of Labor Statistics reported a grim official unemployment rate of 8.1 percent at the close of February 2009, up from 4.8 percent a year ago. Even the most optimistic economists predict a continued rise to at least 9 percent, while the glass-half-empty analysts are forecasting 12 percent or higher.

More insight is gleaned by perusing the Labor Bureau’s specific breakdowns. To get the bad news out of the way, here are some of the dimmer prospects, comparing February 2009 unemployment with February 2008 unemployment (in parentheses):

• Manufacturing: 11.5 percent (5.0 percent)
• Leisure and hospitality: 11.4 percent (8.5 percent)
• Professional and business services: 10.8 percent (6.2 percent)
• Hourly: 9.6 percent (5.5 percent)
• Transportation and utilities: 9.1 percent (4.6 percent)
• Financial services: 6.7 percent (3.4 percent)

On the brighter side, consider education and health services unemployment at 4.1 percent today, compared with 2.9 percent a year ago, and government jobs at 2.6 percent versus 1.7 percent in 2008. These figures still reflect unemployment increases, but the outlook still is more optimistic.

Information technology is a mixed bag, with unemployment in February 2009 at 7.1 percent compared with 5.8 percent last year. This is a case where you may need to be more specific. A report on Examiner.com notes that a number of entry-level information technology jobs are shipped overseas, but computer security still is generally managed by career American employees.

Government Careers? Focus on the Feds

Good Careers in a Bad Economy
Part 1: Graduating in a Recession
Part 2: According to the March 2009 Bureau of Labor Statistics
Part 3: Potential Careers Arising from the Stimulus Bill
Part 4: Career Forecast: Look for Overlapping Opportunities
Part 5: Career Planning: The More Things Change, the More they Stay the Same

For the government employment outlook, the most recession-proof careers are at the federal level. The reason is simple: The federal government can (and does) run up debt, while states and localities are forbidden to do so. Compare the federal response to the recession under President Barack Obama with job creation under legally allowed deficit spending, to the California response under Governor Arnold Schwarzenegger, with job losses required to balance the books.

Another good reason for choosing the federal government is that opportunities are so vast. The quest for alternative “green” energy during the next decade will match the NASA buildup of the 1960s. Even the FBI and CIA have opened their doors with ad campaigns for career employment applicants.

In education, the career outlook is good. However, to truly have a recession-proof position, a specialty in math and/or science is best. This is where the shortages and pay incentives exist.

Payscale.com suggests that the best way to pursue your career dream, and to remain recession-proof at the same time, is to be versatile. This can be compared to an athlete in a team sport who is capable of playing at multiple positions. The more irons in the fire, the better.

Michael Thompson

Today’s college and high school students listen to adults discuss “the worst recession since the Great Depression.” They hear their elders air concerns about what type of world their children and grandchildren will inherit down the road.

Guess what, elders: The next generation already has inherited its first hardship from the economic crisis: career uncertainty.

Today’s teens and young adults are receiving guidance to pursue “recession-proof careers.” This is in contrast to their baby boomer parents, who did not face such a rocky career road.

Will the next generation be the first to inherit a lower standard of living compared with their parents?

Geared to young adults and teens, this five-part series will outline both the best career prospects and the potential dead-ends in today’s job market. And yes, there will be advice on recession-proof careers. But the main intent is to demonstrate how members of the next generation still can pursue career dreams, while remaining realistic at the same time.

Employment Statistics Are Scary

The U.S. Bureau of Labor Statistics reports more than 4 million job losses since January 2008, including 2.6 million from November 2008 through February 2009. The official unemployment rate was 8.1 percent at the end of February, up from 4.8 percent a year ago, and this doesn’t count an estimated 2 million people who are long-term unemployed.

Consider the Labor Bureau’s unemployment figures based on education compared with a year ago. The official count for high school dropouts is 12.6 percent, up from 10.4 percent. For high school graduates, 8.3 percent, up from 4.7 percent. For people with “some college,” 7.0 percent, up from 3.8 percent. For people with bachelor’s degrees and other advanced degrees, 4.1 percent, up from 3.1 percent.

Good Careers in a Bad Economy
Part 1: Graduating in a Recession
Part 2: According to the March 2009 Bureau of Labor Statistics
Part 3: Potential Careers Arising from the Stimulus Bill
Part 4: Career Forecast: Look for Overlapping Opportunities
Part 5: Career Planning: The More Things Change, the More they Stay the Same

These Labor Bureau stats reinforce that it’s still in a young person’s best interests to pursue higher education, in spite of the increasing challenges involved in meeting tuition costs. A typical college graduate now takes about six years to attain a so-called four-year degree, according to the nonprofit College Board, because they take breaks or reduced credit hours to work.

Still, the question lingers: Pursue a dream career or a recession-proof career? Payscale.com suggests that college students can do both. The recession-proof career is described as a “parachute,” just in case the dream career doesn’t work out.

The Department of Labor’s “Dictionary of Occupational Titles” contains 28,800 listings. Among those, there should be room for both a dream career and a recession-proof parachute career.

Michael Thompson

Living on a mall cop’s salary can be hard, but Paul Blart, from the movie Mall Cop, seems to make it work. While his salary might be considered high in many areas, in the tri-state area, $43,000 is not a lot of money.

Paul Blart is a mall cop in New Jersey. He is a single dad, living with his mom and ‘tween daughter, Maya. They live in a modest brownstone owned by Paul Blart’s mother. The Blarts lead a down-to-earth life, without exorbitant expenditures. Paul does tend to wolf down the food a bit with encouragement from his mom, who piles his plate with comfort food.

The low cost of security

Blart makes a salary of about $43,000. This might be a mere drop in the bucket in the state of New Jersey, where the average salary is $49,000. New Jersey has the highest cost of living, the highest property taxes and the highest automobile insurance in the nation. Blart can at least take comfort in the fact that New Jersey also boasts the most malls in the nation, giving him good job security.

Getting around

Blart avoids the high cost of vehicle insurance and maintenance by driving a Segway to work. Segways are personal transportation devices used by many police departments and security patrols. The Segway used by Blart is the same one provided by his job. It’s a win-win situation: Blart saves on insurance and has free transportation to and from work.

Does Blart use credit
There is no evidence that Blart has or uses credit cards. He buys nothing expensive or frivolous, and he satisfies his guilty pleasure—playing Rock Band—with his mall connections. Since he has no auto costs and shares his mother’s house, Blart is likely to qualify for credit cards for good credit, provided his credit history isn’t tarnished with bankruptcy or delinquencies.

Plans for the future

Blart’s longtime dream is to become a state trooper in the Garden State. The current salary for a New Jersey state trooper starts at $58,748.29 and caps at $97,188.48. Blart has tried and failed to pass the physical exam required for the job on numerous occasions.

Should Blart acheive his dream, it would be a financial boon for this single dad. New Jersey state troopers have a wonderful benefits package in addition to the ample salary.

Jaipi Sixbear

Bad credit credit cards can be…bad.  When applying for one, beware of offers that require payment before acceptance.

If one has bad credit but needs a credit card—to buy airline tickets, make hotel reservations, rent a car, shop online, etc—there are options. With a secured or prepaid credit card, a deposit is made to the account and a credit line equal to the amount is available. Since it’s prepaid, the credit is not really credit. But the cardholder is given flexibility to use the card instead of paying cash, as well as make reservations or provide security deposits.

There are also credit cards specifically for people with bad credit. But before accepting one of these bad credit credit cards, the applicant should understand the terms and conditions.

The bad is in the fees

With some bad credit credit cards, there is an acceptance fee and a monthly participation fee. For example, for a $200 line of credit, you could be charged an acceptance fee of $144 and a monthly participation fee of $6, leaving you with a $50 line of credit to start. Basically, the new cardholder receives the card already owing $150. Beware of bad credit credit card issuers that charge you a fee before you accept the card. This is illegal and the Federal Trade Commission has ordered a crackdown on telemarketers offering “guaranteed” credit cards with upfront fees prior to acceptance.

In addition to fees, bad credit credit cards may carry a higher interest rate. Consumers should carefully review the credit card agreement and be sure to understand all the terms and conditions before accepting it. Under the federal Truth in Lending Act, credit card issuers are obligated to provide certain information in all credit card offers they make.

Schumer knows

The Schumer box should appear with every credit card offer. All card issuers are required to have this box–it outlines the fees and rates of cards. The information to be provided must include the APR (annual percentage rate of interest), the different rates that are charged (purchases, cash advances and balance transfers), as well as all penalty rates and the actions that trigger them. If the interest rate is variable, the information in the Schumer box must explain how the rate is calculated.

Other information in the Schumer box includes finance charges, annual fees, fees for credit insurance, the minimum payment required, how an outstanding balance is calculated, credit limit, the grace period and the name of the company offering the credit, which may not be the same as the company doing the marketing.

The best use of a bad credit credit card is to help someone rebuild their credit. To do so, the cardholder’s history with the card–such as amount charged and payments made–should be regularly reported to the three major national credit bureaus: Equifax, Experion and TransUnion. But in order to repair credit, one must be sure to not to repeat the behavior that causes bad credit.

Kevin Hagen

In these turbulent financial times, identity theft is rampant, and credit card fraud is a popular way for identity thieves to wreak havoc. Though many don’t realize it, credit card companies do not require consumers show their IDs when using a credit card to make a purchase. In fact, most specifically forbid retailers from asking for ID in their merchant agreements. There are two primary schools of thought on requiring IDs for credit card transactions: One is that requiring IDs helps prevent identity theft, while the other is that it can actually lead to identity theft.

Those who support the requirement of identification feel that it will help protect the card holder from identity theft. If the credit card falls into the wrong hands, the culprit could be caught more quickly if the cashier asks for their ID and sees that it does not match the name and other information on the credit card.

Secure Cards
While all credit card issuers have respectable policies for protecting their customers, Citibank and American Express are standouts. Be sure to check our Citi and Amex credit card deals section.

On the other hand, some believe that the more frequently IDs are used in public, the greater chance they have of being exposed to thieves. A card holder does not need to lose a credit card or ID for their information to be stolen. During a transaction, nearby thieves can quickly record information from IDs, including names, addresses and dates of birth, all of which can be used to steal an identity without the card holder’s realization.

Companies may choose to ask consumers for their identification when they use a credit card, but it is not essential for the transaction to be completed. Credit card signatures (i.e., the signature on the back of a credit card) are the preferred means of verification for most credit card companies as they provide decent protection against all but the best of forgers. Signatures are always required on credit cards.

The differences of opinion on requiring IDs are likely to continue. In the meantime, some retailers will request IDs from their customers and some consumers will encourage retailers to ask for their ID by writing “ask for ID” or “see ID” next to their signature.

Lindsay Woodland

A look at the finances of Chloe O’Brian, counterterrorism expert from the hit Fox drama.

Chloe O’Brian has been a staple of the hit Fox show 24 since the Day 3 episode. She’s a no-nonsense spitfire, an anti-social technical genius who proved to be an invaluable asset to Jack Bauer, Tony Almeida and the late Bill Buchanan. Not one for trendy fashion, flashy cars or even splurges on beauty regimens, Chloe’s spending habits appear to be a bit of a mystery for most. With Day 7 in high gear, figuring out Chloe’s spending habits may not be that much of a mystery after all.

Life at CTU

For most of Chloe’s career, she worked in Los Angeles for a fictional division of Homeland Security called the Counter Terrorism Unit in an IT/intelligence-related capacity. An equivalent position within Homeland Security in Los Angeles would pay Chloe up to $91,801 a year. Chloe is not one to spend frivolously, and because she spends most of her time at work, it’s likely a lot of her pay goes into a savings account.

Capital Living

Immediate Access
While working with Bill and Tony, Chloe was sure to rack up expenses. A credit card seems a plausible way to pay for all those costs. Considering the line of work she is doing covertly, a platinum credit card would be ideal.

Now living in the Washington, D.C., area, Chloe and her husband Morris are likely to own a home to raise their toddler son Prescott. A new single-family home in Washington, D.C. costs an average of $434,540, although foreclosed homes — and there are lots of them in the nation’s capital — cost significantly less. Being the frugal types, Chloe and Morris more than likely came up with about half of the asking price for a new home, leaving them with a mortgage of about $220,000. Sensible Chloe would want the family home paid off as quickly as possible by opting for a 15-year fixed-rate mortgage at 4.737 percent, with a monthly payment of $1,709.75 per month.

Family Finances

Raising a child is not cheap and with Prescott in his toddler years, the O’Brians can expect to shell out at least $10,000 a year until he reaches school age. Chloe and Morris have opted for a family-friendly SUV to tote Prescott around. But Chloe’s employment situation is sketchy; she has been working covertly with Buchanan and Almeida for the past three to six months uncovering government corruption at the highest levels. There’s no sign she was paid for this work. It seems Morris must be the breadwinner of the family for the moment to keep the family afloat.

With her covert ops work coming to an end, Chloe may be sought after by the FBI for possible employment. With two incomes possibly coming back to the O’Brian household, Chloe, Morris and Prescott could be sitting pretty financially. Until Day 8 arrives.

ShawnTe Pierce