The best ways older workers can prepare for a recession:
If you’re over 50, employed and getting a little jittery about the safety of your job due to the cooling economy, that’s understandable. Although the unemployment rate is still just 3.7% — near its 50-year low — monthly job growth has slowed to 158,000, compared to 223,000 a month a year ago. And the 130,000 jobs created in August failed to meet economists’ expectations.
Urban Institute. “Financial Consequences of Long-Term Unemployment during the Great Recession and Recovery.” Richard W. Johnson and Alice G. Feng. Brief #13, April 2013.“I’m not particularly optimistic that things will be better for older workers,” says Richard Johnson, senior fellow at the Urban Institute and director of its program on retirement policy.
A combination of factors is at play. There’s age discrimination by employers, of course, but also the toxic stigma that often attaches to the long-term unemployed. Dismissive phrases like “There must be something wrong with him” or “It must be her fault she isn’t working.” Another precautionary step: Pay increased attention to your network of colleagues, former workmates and acquaintances. Most job referrals these days come through personal networks and many people get hired after someone puts in a good word about them to the hiring employer.
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