Recessions and tight job markets always force some people to take less-desirable or lower-paying work than they are used to. But this recession has been the most punishing job destroyer in at least 60 years, slashing a net total of 6.7 million jobs.
All told, 14.5 million people were out of work last month, with a jobless rate of 9.4 percent. The result is that many people have had to seek jobs they would not have considered in the past.
Take Kristen Thompson. Before the recession, she worked at an upscale Los Angeles-area gym arranging pricey one-on-one personal training sessions. Now she’s a guard at a women’s prison in rural Wyoming.
After the gym laid her off last year, Thompson spent months looking for work. Even fast-food restaurants didn’t respond to her application. For each opening, dozens of other people seemed willing to work for less money. When she heard that a prison in Lusk, Wyo., (population 1,447) was hiring, she leapt at the chance.
In her new job, she patrols cellblocks and monitors the mess hall. Back in LA, she never had to worry about inmates with weapons or drug stashes or prisoners getting into fights. Yet she’s hardly complaining. It’s a job.
“People have to pay the bills, so what we see is people kind of grasping at straws and taking anything that’s available,’’ said Matthew Freedman, assistant professor of labor economics at Cornell University.
The desperation of the long-term jobless has rippled through the labor force. More skilled and educated workers have filled clerical or restaurant jobs. So unskilled workers such as teenagers or high school graduates who once held most of those positions have displaced those even lower on the economic ladder, such as immigrants, Freedman noted.
The intensified competition has hurt all workers - even those who are still employed - because it shrinks wages. Employers don’t have to pay more to lure workers.
That helps explain why personal income fell 0.1 percent in June, excluding the one-time benefits of the government’s stimulus program. Wages have fallen each month since October - a total of 5 percent over the past eight months.
Indeed, many people who have had to downshift to unsavory jobs have found they’re now earning less, too.