Losing a job

My friend Mart lost her job this week.

I know all about losing a job. Over the years I was fired or laid off four times.

Getting laid off is humiliating and insulting. The process is stressful and and unpleasant. The aftermath, where you have to deal with your feelings about the fact that other people kept their jobs while you lost yours, at the same time that you deal with having a sharply lower income, layers more stress and unpleasantness on top of that.

Losing a job is also frightening. It fills your future with unknowns.

The middle time I was laid off, my former employer hired an expensive outplacement firm to help us make the transition. We had a series of meetings at an off-site location where a counselor gave us advice on dealing with the emotional and practical issues. Although the somewhat simplistic advice was another layer of insult piled on top of the insult of being let go, it was actually pretty well done. I used what I learned there for pep talks that I’d give former coworkers when they were let go. I used it as the basis for part 1 (losing a job) of the Wise Bread series I wrote on getting by without a job.

These last few decades—as the whole economy has adjusted to eliminate the working-class jobs that used to provide a middle-class standard of living—losing a job has become even worse than it was back when I lost mine.  And yet, while losing a job is a pretty bad thing, but it’s not always purely bad. Even people who love their job don’t love everything about it. (Mart in particular, I think, loved books a lot more than she loved her job at a bookstore.)

Still, losing a job sucks, even if things go as well as possible after that.

Visit Mart’s website! Consider buying her book!

Immigrants not competition for jobs?

Cardiff de Alejo Garcia links to a paper by economists Gianmarco IP Ottaviano and Giovanni Peri that tries to make the case that, because US and foreign-born workers choose different occupations, they’re really not competing for the same jobs. (The paper itself is behind a paywall.)

The main thrust of the argument seems to be this:

Certain jobs get lots of foreign-born workers while others get almost exclusively US workers (tailors 54% foreign-born, crane operators 1% foreign-born). Because of this, more foreign workers won’t increase unemployment, because the foreigners would just be competing with other foreigners for those jobs. Further, more foreign workers won’t even decrease US wages, because even another thousand tailors won’t put any pressure on wages for crane operators.

No doubt my own experience as a software engineer colors my perceptions (computer engineers are 33% foreign-born), but I’m unconvinced.

For one thing, these sorts of pressures occur at the margin. Even a modest number of workers (of any nationality) willing to work for less, will have the effect of holding down wages for everyone else.

For another, there is indirect pressure. Even if a Chinese cook doesn’t compete with a US cook for a job at a diner, another thousand of them will hold down wages for Chinese cooks. That will result in lower costs for Chinese restaurants, which do compete with diners. That puts pressure on diners to hold down their costs—including wages for cooks.

Finally, people’s job and career decisions aren’t static in the face of these pressures. Perhaps few software engineers decided to become lawyers (only 4% foreign-born), but a great number of software engineers have moved on to doing something different. Each one who does so is now competing in that new field, potentially holding down wages over there.

Of course, outsourcing production overseas has had at least as strong an impact on employment and salary levels as immigration has. I’m just glad that I figured out early that I would shortly be competing with someone who could live a middle-class lifestyle on $6000 a year. That gave me a few years to take the necessary steps to arrange my life otherwise.