Unemployment and Underemployment: Voices of Michigan’s Mature Workers
A Preliminary Qualitative Study
Department of Human Development and Family Studies, College of Social Science, Michigan State University
The unemployment rate is 8.8% for MI, slightly higher than the U.S. rate (US Census Bureau, February 2012). One affected group, mature workers (age 40
and over) constitute 39.4% of the MI population (U. S. Census Bureau, n.d.a.). Mature workers working part time for economic reasons increased 133% between December 2007
and March 2010 (Rix, 2010), and research shows that older adults are out of work longer, leaving them with unique caretaking concerns, loss of future retirement, psychological
issues, and a decay of skills (Ranzijn, 2006). Also, 865,000 mature workers were classified as “discouraged” in 2012 (B.L.S., March 2012), with 2.4 million individuals marginally
attached to the labor force (B.L.S., March 2012),
Qualitative Study
An exploratory, qualitative research study is being conducted to understand the unique effects of un-or underemployment on workers over 40 years of age. In the Spring 2011,
qualitative interviews (4 community experts and 16 mature adults) were held in Michigan. Community pilot site locations included one rural (population greater than 62,000 with a
15.2% unemployment rate) and one urban community (population exceeding 345,000 with a 8.8% unemployment rate). Interview participants ranged in age from 40 to 65 and
included both males and females. A Family Life Course theoretical framework was used, which identifies the systems and patterns of change that families experience as they
move through different stages throughout their lives (Lerner, 2002). Preliminary findings from the qualitative study revealed: a need for coordinated county specific information
provided when layoffs occur to assist the transition to unemployment, financial education resources (foreclosure prevention and entrepreneurship), social/emotional development
for the individual and family, and implications for policy changes in support of unemployed workers. General themes emerging from the preliminary analysis included: denial and
disbelief, effects of grief, the physical toll work had taken on the individual, differences in the levels of income supports by location, concerns related to age discrimination, and
shifts in social support.
Using a subset of the data preliminary findings revealed a variety of barriers to re-employment. Federal and state policies exist that impede the development of an effective safety
net for families. Perceived barriers such as age and technology influence the ability to obtain adequate re-employment. The themes that emerged are explored below with
supporting data from participants.
– Barriers to Re-employment Efforts
Age/Technology and Policy as Barriers: Research Questions
 Is the age of un-or underemployed mature workers a barrier (real or perceived) to their re-employment? How do mature un-or underemployed workers perceive age?
 What are the structural barriers prevalent within the unemployment system that impede mature workers seeking assistance?
 What are the implications for policy?
Emerging Themes – Structural Barriers
Age


Recognition that ageism exists
Mature workers often engage in opportunities to appear
younger to obtain employment
Technology
 Job & skill training are important
 Need for age specific services
Participant voices
“I believe there is a thing called age discrimination, ageism…I know it’s not supposed to exist, but …it does…”
(Participant #18)
“I started to feel like being over 60 you are considered a sub-citizen, you’re not worth anything anymore.”
(Participant #25)
“There’s no place for us [mature workers/baby boomers], … they [employers] can…hire young people and
actually pay them less…they feel they have to pay you more because you’re old” (Participant #25).
“They [young people] know more than I do with computer skills and technology. I grew up with an Etch-ASketch…” (Participant #25)
“It wasn’t part [technology] of my education at all, it wasn’t even invented.” (Participant #26)
Themes that Emerged - Policy Barriers
Unemployment Assistance –
 Lack of unemployment assistance due to low wages,
part time employment/self employment, and exhausted
benefits
 Gaps in assistance due to the short-term nature of
benefits
Health Support Programs
 Health insurance gaps for un - or underemployed
workers
 Physical and mental implications due to job loss
Resource Assistance Programs
 Inadequate preparation for economic issues nationwide
 Strained local resources and limited assistance for
dislocated workers.
Participant Voices
“… no purpose… no money… no unemployment when you are self-employed.” (Participant #25)
[My wife] is probably one of the 12 or 15% of MI workers who had [already] gone through unemployment …
no longer calculated in the unemployment rate (Participant #18)
“When my weeks ended … … nothing happened… went a month without income…what do you do for
the month in between cause the electric bill and the gas bill and the water bill… they don’t stop.”
(Participant #18)
“We have no health insurance. The only income we have is unemployment - to qualify a couple can make
no more than $425/month. My income is $1200/month.” (Participant #18)
“It doesn’t matter if I have a heart attack or stroke… I can’t get a primary doctor because I don’t have health
insurance... I’ll go to the emergency room … [The doctor says] you have access to your 401k but… I’m kind
of trapped [not old enough to tap into the money].” (Participant #18)
“I get up in the morning and for a brief second I think everything is normal and then I realize it’s not… I
come home, eat dinner, cry and go to bed [discussing depression].” (Participant #25)
“Surprised [local resource] did not have anything for older workers… we need special help.” (Participant #26)
“You have to have zero dollars to your name… late on your house payment… have shut off notices on your
utilities… virtually have nothing until you will get help… It’s almost contradictory… if you have a little bit, we
won’t help you at all.” (Participant #25)
Public Policy Implications
Developmentally Appropriate Re-Employment Programs for Older Workers - Training programs for re-employment efforts need to be appropriate for older workers. This type
of service would not only provide peer-group support and comfort, but it would begin to address the specialized needs of older workers (Encel & Studencki, 2004).
Reform of Unemployment Insurance - Older workers gain higher post employment earnings when they receive continuous benefits for at least 12 months (Fitzenberger et al,
2010). Unemployed workers do not wait until termination of benefits to obtain new jobs (Fitzenberger et al, 2010, Cebran et al, 2007). As a result, policies must benefit families and
be flexible and adaptive to allow for changes in work structure, industry mix, and demographics for workers (Wenger and Walter, 2006).
Strong Need for Safety Net for Families- Research shows that asset based programs create resilient families (Rothwell & Han, 2010). Possible programs are: national health
insurance, Earned Income Tax Credit, and a livable wage (Seccombe, 2002). When support programs are linked (Whelan, 2010), a significant safety net for families is developed.
Dr. Barbara Ames, Professor, ames@msu.edu
Contact Information
Amanda Guinot-Talbot, PhD Student; guinotam@msu.edu Erica Tobe, PhD Student; tobee@msu.edu
Prepared for the Michigan Family Impact Seminar – April 26, 2012; Pathways to Michigan’s Economy and Jobs.