CommonCensus

Estimated Productivity Losses Caregiving Causes U.S. Businesses

2008-05-09T18:53:00.000-07:00

The baby boomers comprise a large and aging population. As baby boomers and their parents age, more and more people are requiring caregiving in varying levels of intensity. In fact, more than 44 million Americans provide some sort of care for a family member or friend 18 years or older. The National Alliance for Caregiving and AARP conducted the study, called Caregiving in the United States, to find the costs to employers of caregiving employees.

"This study estimates the productivity losses to U.S. business of employees who must make workplace accommodations as a result of caregiving responsibilities. These include costs associated with replacing employees, absenteeism, crisis in care, workday interruptions, supervisory time, unpaid leave, and reducing hours from full-time to part time," according to the study.

Some of the key findings of the study are listed below:

The total estimated cost to employers for full-time employees with intense caregiving responsibilities is $17.1 billion.

The average cost per employee for those with intense caregiving responsibilities is $2,441.

The total estimated cost to employers for all full-time, employed caregivers is $33.6 billion.

The average cost per employee for all full-time, employed caregivers is $2,110.

The majority of family caregivers (79%) are providing care to someone over the age of 50.

Nearly 60% of those caring for an adult over the age of 50 are working; the majority of those work full-time.

Nearly 40% of caregivers are men.

The average age of the caregiver for a person over the age of 50 is 47.

Most caregivers provide unpaid care to a parent or grandparent.

Approximately 15% of the caregivers were providing care to someone who lived at a distance of more than an hour away.

At least 6 out of 10 employed caregivers reported that they had made some work-related adjustments as a result of their caregiving responsibilities.

10% of the employed caregivers reduced their hours from full-time to part-time.

Study Documents Baby Boomers' Plans For Working In Retirement

2008-05-09T18:22:00.000-07:00

By dint of their sheer number alone, baby boomers are an influential group. So when a group of about 78 million people decides to blaze a new trail, the rest of us have no choice but to follow their lead.

In this case, the baby boomers have begun to reshape the American workforce.

"A succession of surveys over the past decade makes plain the plans of a new generation of older Americans to keep working. Most of this research reveals that four of five boomers are expecting to continue working at the point when earlier generations moved to the sidelines," according to the MetLife Foundation/Civic Ventures New Face of Work Survey. "Indeed, there is already evidence of shifting labor patterns on the part of the pre-boomers, as early retirement levels off and millions of older workers remain in the workforce. These polls also find that most people who keep working want more than an endless incarnation of midlife work. Instead, they are keen on renegotiating their relationship to work, looking for more flexibility and liberation from the long hours characterizing midlife labor in America today."

53 percent of adults aged 50 to 70 expect to work even into their retirement, according to the survey.

The survey focused on what baby boomers want to accomplish through their work once they have passed the traditional retirement age, and whether those desires meshed with what America will need to have people doing. Thankfully, rather than finding a huge disconnect between what baby boomers will want to be accomplishing and what will need to be accomplished, the survey found "heartening indications of what might well be a win-win opportunity of staggering proportions."

According to the survey, 50 percent of Americans aged 50 to 70 are interested in working--now or in the future--in positions that would help improve the quality of life in their communities. More specifically, of leading edge baby boomers, 58 percent are interested in such positions.

"There is overwhelming interest in finding specific types of work in retirement that would
serve the community and people in need," according to the survey. Of baby boomers who plan to work during retirement, 78 percent are interested in working to help the poor, the elderly
and others in need. 56 percent are interested in working with health issues, such as in a hospital or for an organization working to fight a particular disease. And 55 percent are interested in teaching or other educational positions.

Those surveyed gave a variety of reasons for why they will want to continue working past the traditional retirement age. The most common reasons included staying connected with other people; receiving a sense of purpose from working; earning additional income; and the ability to help improve the quality of life in their community.

Philadelphia Tops List Of Best Cities For New Grads

2008-05-09T11:52:00.000-07:00

As summer rapidly approaches, millions of college students are preparing to graduate and find their first "real world" jobs. (Few of them will likely be actually working for "The Real World.")

Philadelphia topped a recent list of the top 10 most affordable cities for grads. The list was compiled based on research from Apartments.com and CBCampus.com, which is part of CareerBuilder.

"Joey Hyde, a 25-year old physics grad student at the University of Pennsylvania, likes living in downtown Philadelphia because he can get around without a car, make spontaneous plans with friends or his fiancée for a night on the town, and enjoy a great meal at his favorite upscale Cuban restaurant for half of what it would cost in Manhattan," according to MSNBC.

"Frontrunner Philadelphia, along with other cities on the list, has been working to enhance its reputation among younger workers and prevent the 'brain drain' that happens when young adults graduate and leave," according to MSNBC.

For more on this phenomenon, see our article on the Top 5 Declining U.S. Markets.

Research criteria for each city included "the population of people age 20 to 24, the number of entry-level job openings suitable for new grads, and the average cost to rent a one-bedroom apartment," according to MSNBC.

The rest of the list included, in order from second through tenth: Boston, New York, Phoenix, Chicago, Dallas-Fort Worth, Los Angeles, Houston, Detroit and Atlanta.

New York was the most expensive city on the list in terms of the average rent for a one-bedroom apartment, which is $1,520 per month. Detroit featured the cheapest rental rate for a one-bedroom apartment at $699 monthly.

Layoffs Up 68 Percent From March To April

2008-05-01T13:06:00.001-07:00

Planned layoffs by U.S. companies in April increased 68 percent compared to planned layoffs in March, hitting the highest levels seen since September 2006, according to a report released today by employment consulting firm Challenger, Gray & Christmas Inc.

U.S. companies planned 90,015 layoffs last month, compared to 53,579 in March. April's layoffs were a 27 percent increase from a year earlier. Planned layoffs haven't been this high since September 2006, when 100,315 jobs were cut, according to the report.

The financial sector was hit hardest by the spate of layoffs, because of "the housing slump and about $300 billion in write-downs on bad mortgages and investments, the firm said," according to Reuters. "The financial services industry announced 23,106 cuts in April with almost half of them occurring in a two-day period that saw hefty planned layoffs from Citigroup and Merrill Lynch, it said."

The telecommunications and transportation sectors also suffered heavy job losses, with 8,007 and 7,954 planned layoffs in April, respectively.

"Employers have announced 290,671 jobs to be eliminated in the first four months of 2008, up 9 percent from the 266,658 cuts recorded during the same span in 2007, the firm said," according to Reuters.

Economic Downturn Sucks The Fat From The Cosmetic Surgery Biz

2008-04-30T08:02:00.000-07:00

As belts tighten and families trim the fat from their budgets, it is poignantly ironic that one of the first things to be chopped from the list of luxuries in certain families is getting their own bodies chopped up. I mean, of course, that great American pastime: cosmetic surgery.

An article in the San Diego Union-Tribune recently examined the sassy, slenderizing effects of the downturn on the cosmetic surgery industry, which raked in $13.2 billion in 2007. The news isn’t good:

“‘We're seeing fewer consultations,’ said Dr. Robert Singer of La Jolla. ‘During a time of downturn in the economy, practices see fewer shoppers.’”

“Shoppers” meaning people who want pieces sucked/chopped/frappéd out of them. At this point, the doctors speculate that the reason is simply that the money isn’t there. Mom and Dad aren’t willing to shell-out for little Helvetica’s new nose when they are wondering how they’ll even pay for her college. Before long, however, our problems may just correct themselves. I.e. food prices will have us all slimming down the old-fashioned way by natural starvation.

While this is good news for people like me with a hideously twisted body image (So...hungry...), it comes as little comfort to doctors and medical suppliers. One example:

“Mentor Corp. of Santa Barbara reduced the upper range of its sales estimates for 2008 by $15 million in part because of declining sales of its breast implants in the United States.”

What have we become when young women can’t afford to take that first step towards becoming a silicon-based life form? Is this the same world in which Norman Rockwell limned his immortal painting, "Freedom from Flatness?" But wait...There may be another explanation for all of this: Americans may still be leaving cartilage and fat on the OR floor, but far, far away from home.

The international medical tourism trade is booming. For the same price or less, medical tourism firms and affiliated hospitals are offering the same procedures you find at your local Mom n’ Pop Lipo Stop, but in destinations like Brazil, India and Thailand, allowing people to recover in a more clement, relaxing climate. NuWire discussed the medical tourism industry and how investors might take advantage of it as it grows, including a list of the top 5 places to invest. Thailand didn’t make the cut because military coups don’t do much for one’s convalescence.

Having been hospitalized a number of times throughout Asia, I can vouch for the fact that the staff in those countries is equally if not more capable than the staff in American hospitals. And having also lived and been hospitalized in Atlanta, I’d say that the Thai doctors spoke better English, too, so you needn’t worry about communication issues.

So while the Nip/Tuck set may be facing thinner times, the news isn’t quite so dismal for the rest of us. On the next family trip to Costa Rica, mom can regain the full, supple lips she’s chewed away with nervous tension, dad can come back missing half of his intestinal tract, and little Helvetica can go to prom with a brand new schnoz. Best of all, investors who give people a place to rest while they recuperate and face the uncertainty and agony of their mutilation might walk away with a severe case of obesity...of the wallet.

This was a guest post by Trenton Flock, Web Editor at NuWire.

Oldest Americans Are Happiest

2008-04-19T15:44:00.000-07:00

Those who are looking forward to their retirement are looking forward to the happiest time of their lives, according to a new study. The oldest Americans are the happiest, "and older adults are more socially active than the stereotype of the lonely senior suggests," according to an Associated Press article.

"The two go hand-in-hand—being social can help keep away the blues."

"A certain amount of distress in old age is inevitable, including aches, pains and deaths of loved ones and friends. But older people generally have learned to be more content with what they have than younger adults," according to the article.

The study, which included 28,000 people aged 18 to 88, found that "there were ups and downs in overall happiness levels during the study, generally corresponding with good and bad economic times. But at every stage, older Americans were the happiest," according to the article.

"In general, the odds of being happy increased 5 percent with every 10 years of age."

Presidential Candidates Reach Out To Young Voters

2008-04-19T15:27:00.000-07:00

In the midst of a drawn-out presidential campaign, Democratic senators Barack Obama and Hillary Clinton, both vying for their party's nomination, are courting young voters.

They both appeared on Stephen Colbert's satirical news show, "The Colbert Report," which is immensely popular with the young demographic. Choosing to appear on "The Colbert Report" may have proven to be a wise decision for the candidates, because a recent study, to be published in an upcoming issue of PS: Political Science & Politics, has confirmed that the purported "Colbert Bump" actually exists.

"Democrats who appeared on the show raised about 44 percent more money after their appearance than they did before. Republicans, on the other hand, didn't fare as well after their Colbert appearance. Their appearance either had no effect, or a slightly negative one," according to a LiveScience article.

Thus, Republican nominee John McCain might want to steer clear of "The Colbert Report."

Obama has also drawn the attention of younger voters by making a reference to a popular Jay-Z song in a recent speech. In describing how presidential candidates need to overcome negative attacks, he motioned as though he was brushing something off his shoulders, an apparent reference to the Jay-Z song "Dirt Off Your Shoulder." Ben Smith of Politico called the allusion a "generational dog whistle," meaning that it's a reference that only young voters will be able to understand.

Many Americans Cannot Afford Homes

2008-04-19T15:06:00.000-07:00

Housing prices are falling around the country, but many Americans still cannot afford to buy a home. In fact, in an earlier post, I cited a study that found that 60 percent of Americans plan not to buy a home in the next two years.

"In many parts of the country, housing increases have outpaced wage growth for almost a decade. Census data released in 2006 revealed that between 2000 and 2005, the burden of housing costs grew sharply," according to a Bankrate.com article.

The article cites a recent study done by the Center for Housing Policy (CHP) called "Paycheck to Paycheck: Wages and the Cost of Housing in America." The study looked at 210 U.S. metropolitan areas and the wages earned by workers in 60 different occupations.

"Registered nurses, who typically have high salaries, were unable to purchase a median-priced home in 108 of the markets," according to the article. "The study also found that retail salespeople and food-preparation workers couldn't afford to rent a two-bedroom apartment in any of the markets. It based affordability on the metrics that a family or person should not spend more than 30% of household income on rent and utilities while homeowners should not spend more than 28% of their income on the mortgage, taxes and insurance."

Also according to the article, "The Housing Affordability Index measures the cost of housing against median family income. The National Association of Realtors, or NAR, which calculates the index, considers that the typical family makes enough money to buy the typical used home, assuming a 20% down payment and a traditional 30-year mortgage.

"In 2000, the NAR pegged the index at 129.2, meaning the typical family had 129% of the income necessary to pay for the typical used house. That figure dropped to 104.9 in June 2007, even though the 2000 median family income of $50,732 rose to $59,157 during the period.

"That's because the median price of a home in 2000 was $139,000, but by June 2007 prices peaked at a whopping $229,200. In those seven years, the median price of homes increased 64.9%, while median incomes rose just 16.6%."

Recession Forces Teens To Curb Spending

2008-04-19T14:26:00.000-07:00

In a previous post, I talked about how the tightening job market would bode poorly for teens--there will be more competition for fewer summer jobs.

A recent Associated Press article documented another way in which the slowing economy is affecting life for teenagers: the recession has made frugality cool.

"Teen hiring has slumped by 5 percent since March 2007, with many mom-and-pop stores, which typically hire younger workers, laying off employees. Hiring in the overall job market fell by just 0.1 percent during the same period," according to the article.

Because of the recession, "jobs for teens are less plentiful, and parents who supply the allowances are feeling the economic pinch themselves," according to the article. "The stalwart retailers of teen apparel, such as Abercrombie and American Eagle Outfitters Inc., are reporting sluggish sales, defying the myth that teen spending is recession-proof: It holds up longer, but can eventually fold."

Teenagers always want to be trendy, but now they have less money to spend on trends. So, "Last week, Ellegirl.com, the teen offshoot of Elle magazine, launched a new video fixture called Self-Made Girl, which shows teens how to make clothes and accessories. The first video offers tips on how to create a prom clutch," according to the article.

For those who aren't crafty (such as myself), thrift shops, consignment stores and second-hand stores are all great options for saving money on close. An added bonus is that buying used clothes allows people to reduce their carbon footprints.

"Kerstin Block, president and co-founder of Buffalo Exchange, a Tucson, Ariz.-based chain that sells second-hand clothing, said Gap jeans there run $9 to $20. A new pair runs $50 to $60. Block noted that buying second-hand is also appealing to a growing eco-friendly sentiment among teenagers," according to the article.

"Economists say this teen spending slump could be the worst in 17 years, when teen frugality led to the demise of once-hot Merry-Go-Round Enterprises Inc. and ushered in an era of flannel shirts and torn jeans," according to the article.

I grew up in Seattle, and had no idea that flannel and ripped jeans were popular because they were cheap. I just thought everyone was into grunge. And while we're on the subject, the 14th anniversary of Kurt Cobain's tragic death was this month. May the voice of his generation rest in peace.

Global Food Prices Up 40 Percent Since Mid-2007

2008-04-18T17:22:00.000-07:00

In my previous post on rising food prices, I noted that more and more people were using food banks as a result of the skyrocketing costs.

Food prices have increased 40 percent globally since mid-2007, according to the Associated Press.

But the crisis of rising food prices is so dire in Haiti that it has led to riots. "Haitian lawmakers fired Prime Minister Jacques Edouard Alexis over the rioting," according to the AP.

In response, the United Nations will distribute 8,000 tons of food, along with other help, to Haiti. "Food provided by the World Food Program will focus on children, pregnant women and nursing mothers in the north, west and central regions of Haiti, the poorest nation in the Western Hemisphere," according to the AP.

Once again, I am encouraging readers to make a donation, large or small, to a food bank near them. I purchased staples such as cereal, peanut butter, beans, soups, pasta, rice and macaroni and cheese (okay, okay, macaroni and cheese is not a staple--nor is it particularly healthy--but it is easy, quick and delicious) and took them to a public drop-off point for Northwest Harvest, Washington State's hunger relief agency, which provides 18 million pounds of food to more than 300 food banks annually. It didn't cost me a lot of time or a lot of money, and my small donation will help free someone from deciding whether to buy groceries or their prescription medication.

Sixty Percent Of Americans Won't Buy A Home In Next Two Years

2008-04-17T10:21:00.000-07:00

With the economy hurtling downwards, a seemingly endless string of polls measures the public's perception of the recession. A recent poll shows the pessimism Americans are feeling about the real estate market. One finding of the Associated Press-AOL Money & Finance poll was that, "Sixty percent said they definitely won't buy a home in the next two years, up from 53 percent who said so in an AP-AOL poll in September 2006," according to an AP article.

Additionally, the poll found that "more than a quarter of homeowners worry their home will lose value over the next two years. Fully one in seven mortgage holders fear they won't be able to make their monthly payments on time over the next six months," according to the AP. Fear of foreclosure, heightened by the rising number of foreclosure filings, has many afraid of losing their homes.

Investors looking to sell properties these days will likely not be heartened to hear that, according to the poll, only 11 percent are certain or very likely to purchase a home soon. In 2006, that percentage was at 15.

"The number envisioning falling prices in their area has grown to one in four, while four in 10 think prices will rise, a decrease from two years ago. Expectations for rising prices are highest in the South, with Westerners likeliest to predict they will drop," according to the AP.

There are many markets on the West Coast that have bucked the trend of falling property prices thus far, but residents of those areas clearly expect that trend to come to an end.

In 2006, when the poll was last conducted, the subprime lending crisis was just beginning to appear on many people's radar screens. At that time, about 20 percent of those polled had adjustable rate mortgages (ARMs), compared to about 10 percent of those recently polled. Lending practices have changed as the fallout of the subprime lending crisis has become more apparent and widespread.

SBA Study Finds Men And Women Entrepreneurs Have Different Motivations

2008-04-11T16:59:00.000-07:00

The verdict is in: Men and women are, in fact, different, an SBA study has found--at least in terms of entrepreneurship.

The study found that gender does not affect the performance of any particular new venture, but that several other factors do. "Differing expectations, reasons for starting a business, motivations, opportunities sought and types of businesses…vary between the genders, and these result in differing outcomes," according to the study.

Below are excerpted the highlights of the study:

• Men had more business experience prior to opening the business and higher expectations.
• Women entrepreneurs had a larger average household size.
• The educational backgrounds of male and female entrepreneurs were similar.
• Women were less likely than men to purchase their business.
• Women were more likely to have positive revenues, but men were more likely to own an employer firm.
• Female owners were more likely to prefer low risk/return businesses.
• Men spent slightly more time on their new ventures than women.
• Male owners were more likely to start a business to make money, had higher expectations for their business, and did more research to identify business opportunities.
• Male entrepreneurs were more likely to found technologically intensive businesses, businesses that lose their competitive advantage more quickly, and businesses that have a less geographically localized customer base.
• Male owners spent more effort searching for business opportunities and this held up when other factors were controlled for.
• Differences between women and men concerning venture size and hours are explained by control variables such as prior start-up and industry experience.
• Researchers and policymakers need to understand that studies which do not take into account the differing nature of men- and women-owned firms could result in misleading results.

Rising Food Costs Lead More People To Food Banks

2008-04-04T17:29:00.000-07:00

Food prices are rising across the board these days. Over in InvestorCentric, Eric wrote earlier about the rising price of corn, which recently surpassed $6 per bushel--a record. But it's not just the price of corn that's going up: Food prices are rising across the board and around the globe.

"Cost increases are affecting most countries around the globe, with prices for dairy products up 80 percent, cooking oils up 50 percent, and grains up 42 percent from 2006 to 2007," according to Slate.

"At $1.32, the average price of a loaf of bread has increased 32 percent since January 2005. In the last year alone, the average price of carton of eggs has increased almost 50 percent," according to a recent MSNBC article.

"Ground beef, milk, chicken, apples, tomatoes, lettuce, coffee and orange juice are among the staples that cost more these days, according to the federal Bureau of Labor Statistics," the MSNBC article said.

"A 12-ounce can of frozen, concentrated orange juice now averages $2.53 — a 67-cent increase in just two years," according to the article. "And a carton of grade A, large eggs will set you back $2.17. That's an increase of nearly $1 since February 2006."

What's behind the huge food price increases?

The rising energy costs taking bigger chunks out of consumers' wallets are one culprit. Rising energy costs are contributing to a secondary cause of the price increases: Increased interest in biofuels, such as corn-based ethanol.

"In 2006, 14 percent of the total corn crop in the United States was converted into ethanol; by 2010, that figure will rise to 30 percent. When the production of corn intended for human or animal consumption decreases, prices go up," according to Slate.

Finally, weather is an issue. Inclement weather has negatively affected the Corn Belt and Australia has experienced a draught while Argentina has experienced flooding. These weather conditions have all decreased harvests and exports.

The rising prices are leading to another increase: An increase in the number of people going to food banks.

"Nationwide, a family of four on a moderate-cost shopping plan now spends an average of $904 each month for groceries, an $80 increase from two years ago, according to the USDA," according to the MSNBC article.

"America's Harvest, which distributes nearly 2 billion pounds of food and grocery products each year to more than 200 food banks across the country, estimates that its overall client load increased by 20 percent in the fourth quarter of 2007," according to the article.

With costs of necessities rapidly increasing, times are tough for a lot of people. So I encourage everyone who can spare a little--investors, I'm talking to you--to make a donation to their local food bank.

Next week, I will set aside the money I usually spend on my daily Grande soy blueberry misto, no water, poured over lots of ice (yes, I have seen When Harry Met Sally, and no, I am not quite as picky as Sally) and instead, buy food to donate to a local food bank.

If you make a donation, large or small, I'd love to hear about it!

Life Expectancy Increases With Education

2008-03-28T17:13:00.000-07:00

"Life expectancy in the United States is on the increase, but only among people with more than 12 years of education, a new study finds," according to a recent HealthDay News article. "In fact, those with more than 12 years of education--more than a high school diploma--can expect to live to 82; for those with 12 or fewer years of education, life expectancy is 75."

The study was published in the most recent issue of Health Affairs.

In my previous posts this week, I have mentioned how life expectancy increases with wealth and how the current generation of senior citizens has more money and education than the generations that preceded them. The combination of education and wealth is obviously a key to the long lives that today's seniors can expect.

Tobacco use plays a large role in the disparity between life expectancy for those with more than a high school education and those whose educations ended with their high school diplomas, the study found. "About one-fifth of the difference in mortality between well-educated and less-educated groups can be accounted for by smoking-related diseases such as lung cancer and emphysema," according to the HealthDay News article.

"When the researchers compared data from the 1980s to data from the 1990s, people with more education had almost a year and half of increased life expectancy. But, for people with less education, life expectancy increased by only six months," according to the article. "In the period of 1990 to 2000, the better educated saw their life expectancy increase by 1.6 years. For the less educated, life expectancy didn't increase in all."

Between women with education beyond high school and those without, there is an even bigger life expectancy gap.

"Less-educated women actually had a decline in life expectancy. In 2000, those women with more than 12 years of education by age 25 could expect to live five years longer than less-educated women," according to the article.

"Dr. David L. Katz, director of the Yale University School of Medicine's Prevention Research Center, thinks fighting poverty and improving education are key to increasing life expectancy among less-advantaged Americans," according to the article.

Perhaps with increased education, poorer Americans could put themselves on the path to higher-paying jobs. Increased education and increased wealth would likely make better health care more accessible to them and extend their life expectancies.

America's Senior Citizens Wealthier Than Previous Generations Of Seniors

2008-03-28T16:30:00.000-07:00

In my earlier post, I wrote about the phenomenon of middle-aged adults moving home with their parents, most of whom are at or near retirement age. While this is not a practical solution for all families, in many cases, it's doable. Perhaps playing role is that U.S. government researchers released a report yesterday which found that, "older Americans have more money and are expected to live far longer than prior generations," according to Reuters.

Data from 15 federal agencies on population trends, economics and health issues were combined to create a report called Older Americans 2008.

"The average net worth of older Americans—those 65 or older—has increased almost 80 percent over the past 20 years," according to Reuters. "And those who reach the age of 65 are now expected to live an average of 19 more years, or seven years longer than people who had reached age 65 in the year 1900."

Medical advances are largely to thank for this increase in life expectancy. And the increasing wealth of senior citizens makes quality health care more accessible to them.

One final finding of the report? "Older adults in the United States are far better educated than prior generations. In 2007, 76 percent of those over 65 had high school diplomas, and at least 19 percent had a bachelor’s degree, up from 24 percent with high school diplomas in 1965 and just 5 percent with bachelor’s degrees."

Adults Moving Back Home With Their Parents

2008-03-28T15:12:00.000-07:00

In what has become a fairly common practice, many college graduates move back in with their parents temporarily after graduation. I did this (thanks, Mom and Dad!); so did most of my friends. Living at home for a time generally allows new college grads to find a job and save up some money before heading out to live on their own.

"But now the slumping economy and the credit crunch are forcing some children to do so later in life—even in middle age," according to a recent Associated Press article.

The slumping economy, dwindling jobs and rising costs for housing, food, gas and medical care are all combining to make it harder for many people to make ends meet. So even some adults are moving back home with their parents to decrease the strain on their finances.

"Kim Foss Erickson, a financial planner in Roseville, Calif., north of Sacramento, said she has never seen older children, even those in their 50s, depending so much on their parents as in the last six months," according to the AP.

Parents, still being parents, are used to taking care of their children. "Parents feel guilty if they don’t offer help, but [Erickson] warns them to be careful with their savings," according to the AP. "Some of Erickson’s clients are giving as much as $50,000 at a time to their kids, many of whom have overextended themselves with big houses or lavish lifestyles," according to the AP.

But the parents of middle-aged adults are typically retired, semi-retired or nearing retirement and have to think about major expenses such as extensive medical care.

"Plenty of well-meaning parents must delay retirement or scale back their dreams because they have to help their children," Karen Maloney Stifler, a financial planner in Hudson, Ohio, said, according to the AP.

Adults who are considering moving back home with their parents for financial reasons should make sure that such a move makes sense for their parents, too.

Texas Now Home For One In Six Americans Who Moved Out Of State Between July 2006 And July 2007

2008-03-27T09:31:00.000-07:00

"All my exes live in Texas, and Texas is a place I'd dearly love to be," goes the chorus of an old George Strait song. Well, based on numbers released by the U.S. Census Bureau, a lot of people now have exes who live in Texas.

Between July 2006 and July 2007, about one in six Americans who moved out of state moved to Texas.

"16 percent of Americans who moved to other states between July 2006 and July 2007 came to Texas, which led the nation for the second straight year in that category," according to the AP.

"Four Texas metropolitan areas were among the biggest population gainers as Americans continued their trend of moving to the Sun Belt in 2006 and 2007," according to the Associated Press.

Dallas-Fort Worth saw 162,000 new residents come to the area in that time period--more than any other metropolitan area. Houston, Austin and San Antonio were also among the top 10 metropolitan areas in terms of population gain. Houston was fourth, Austin was eighth and San Antonio was tenth.

Atlanta, Phoenix, Riverside, Calif., Charlotte, N.C., Chicago and Las Vegas comprised the rest of the top 10.

"Of the 50 fastest-growing metro areas, 27 were in the South and 20 were in the West. Two were in the Midwest, one—Fayetteville, Ark.—straddles the South and Midwest and none was in the Northeast," according to the AP.

For more information on the migration to the Sun Belt, see our article Sun Belt Luring Young Workers.

All of the people moving to these areas had to move from somewhere, and many locations across the U.S. saw their populations decline. "Detroit lost more than three times as many people as any other metro area — its population declined more than 27,300. Other areas losing more than 5,000 people were Pittsburgh, Cleveland, Columbus, Ga., Youngstown, Ohio, and Buffalo, N.Y.," according to the AP.

Detroit, Buffalo and Pittsburgh all made NuWire's list of the Top 5 Declining U.S. Markets.

For more information on population shifts in the U.S., see NuWire's Population Growth Table From 2000-2006.

Slowing Economy Could Impact Summer Jobs

2008-03-25T10:41:00.000-07:00

When I was a student, I spent four summers working at a small Greek restaurant in my hometown (Kafe Neo in Edmonds, for those of you in the Seattle area. Try the Grecian Special gyro--pronounced "YEAR-oh"--and definitely get a side of skordalia and pita!). The money wasn't great, but it was something; I got delicious free Greek food while I worked, and whenever I went in while I wasn't working; I liked my coworkers; it wasn't too stressful. In short, it was a typical summer job.

Unfortunately for today's high school and college students--prime candidates for seasonal work--summer jobs are likely to be hard to come by this year.

"Oil prices skyrocketing. Home sales plummeting. Retail sales falling. Because of all these factors, there is likely to be a dearth of 'help wanted' signs up this summer. And many teens may be extra motivated to want work as parents, seeing discretionary dollars dwindle, start asking kids to pick up more of the tab," according to a recent MSNBC article.

Two recent studies show that the summer job market is going to be a competitive one.

"Nearly half of hiring managers say they have no plans to hire any seasonal workers this year, according to a study of 1,100 companies released today by SnagAJob.com, a job site for hourly positions. When asked why they wouldn’t be hiring, 31 percent of those polled said they didn’t have the budget," according to the article.

Further, "a report put out this month by the Center for Labor Market Studies at Northeastern University states that 'the summer 2008 job outlook for teens looks particularly bleak,'" according to the article.

Part of the squeeze will come from "the growing number of older workers going after traditional teen jobs in retail and food services, and also the increase in illegal and legal immigrants vying for those jobs," according to the article.

With the economy in a slowdown or a recession--depending on your point of view--more people are looking for work and there are fewer jobs to go around. I know one woman, well established in her job, who recently got a second job working weekends at Starbucks to help cover her rising gas and food costs.

Teenagers and adults alike who are looking for part-time, seasonal work should start looking soon. According to the SnagAJob.com study, 76 percent of companies that will be hiring summer and seasonal workers expect to fill those positions by May.

Life Expectancy Increases With Wealth

2008-03-24T11:43:00.001-07:00

While life expectancy has increased for the U.S. as a whole, wealthy people have seen the greatest gains in life expectancy, recent government research has shown.

The gap in life expectancy between richer and poorer Americans "mirrored trends in infant mortality and in death from heart disease and certain cancers," according to the New York Times.

Gopal Singh, a demographer at the Department of Health and Human Services, was one of the researchers involved in the study. Federal officials found "'widening socioeconomic inequalities in life expectancy' at birth and at every age level," Singh said, according to the New York Times.

People in the most affluent group of Americans could expect to live 75.8 years and people in the poorest group could expect to live 73 years in 1980 to 1982, according to Singh. That's a difference of 2.8 years. "By 1998-2000, the difference in life expectancy had increased to 4.5 years (79.2 versus 74.7 years), and it continues to grow, he said" according to the New York Times.

Also of note is that the "life expectancy was higher for the most affluent in 1980 than for the most deprived group in 2000," Singh said, according to the New York Times.

With the rising costs of health care, it's not too surprising that those who can afford it are living longer than those who can't.

European Union Blue Card Program To Entice Foreign Workers

2008-03-20T10:34:00.000-07:00

An aging workforce is not a problem that the U.S. is alone in facing. Neither is a problem in attracting the best and the brightest. The European Union, too, is struggling with both of these situations.

"Over the last eight years, more than 10 million foreigners have immigrated to the European Union, plugging the gaps at the cheaper end of the labor market that an aging native population can no longer fill," according to a recent MSNBC article.

"By midcentury a third of all Europeans will be retired, and demographers predict the EU will need another 20 million workers to fill that gap by 2030. But in the contest to attract the best brains, Europe is falling far behind."

According to the article, just 1.7 percent of the working population of 290 is made up of "highly qualified" foreign workers. The U.S. has twice as many such workers, and Australia has 8 percent more.

The EU has recognized the impending crisis and is scrambling to find a solution.

"In an effort to attract big brains from abroad, the European Commission wants to create an express line for the EU labor market." The plan would make available a renewable permit, called a blue card and inspired by the U.S. green card, which "would allow highly skilled workers and their families to move easily between member states and jobs."

The blue card is almost necessary, because each of the EU's member states has a different set of immigration rules. And, with many EU member states facing high unemployment rates and/or social unrest caused in part by immigration, many balked at the idea of encouraging the immigration of additional foreign workers.

"Cardholders and their families will still be able to move from country to country without returning home first, but EU member states will be able to impose their own quotas on migration, and cardholders will need to prove they have a job awaiting them before settling in another state."

There is obviously much fine-tuning to be done, and hopefully as the details of the blue card program are addressed, so too will be the underlying resentment toward immigrants common in many locations across the EU. For more information on immigration in the EU, see my previous post: Ireland Shaped By Growing Immigrant Population.

Ireland Shaped By Growing Immigrant Population

2008-03-17T20:57:00.000-07:00

"Immigration — whether by Celts, Normans, Britons or Vikings — is not a new phenomenon for Ireland," according to an article published today on MSNBC. "In fact, the figure who arguably had the greatest single impact on the course of Irish history was a bearded, snake-charming holy man who hailed from Roman-ruled Britain.

"His name was St. Patrick."

Immigration has vastly changed the landscape of a nation once seen primarily as a nation of emigrants, not immigrants, despite the forays of Celts, Normans, Britons and Vikings into Ireland.

"In the 1980s, Ireland was barely able to retain its own. The unemployment rate was around 18 percent and thousands of young people were fleeing the country annually for Britain, the United States and elsewhere," according to the article. "The endless conflict in Northern Ireland along with divisive battles over social issues in the south combined to scare off the best and brightest."

But recently, the tide has been turning.

"This transformation — fueled by a decade-long economic boom and relatively liberal immigration laws — means Ireland has gone from Western Europe’s poorest and most homogeneous country to one of its wealthiest and most cosmopolitan in little more than a generation," according to the article. Now one in 10 people in Ireland are foreign-born.

Portlaoise, a commuter town of 14,000 people southwest of Dublin, is overseen by a Nigerian-born mayor, Rotimi Adebari. In Gort, a town of 2,500 in western Ireland, half of the population is made up of immigrants, including 900 Brazilians.

Immigration has propelled Ireland's population to 4.2 million people, its highest level since 1861, and helped make it the fastest-growing country in Europe, according to the article.

"The Irish economy now depends on migrant workers — whether Asian medical personnel, Eastern European service staff or Polish construction workers," according to the article. "Between 1995-2000, the economy expanded at an astounding average of 9.5 percent per year; now it has eased to a still robust rate of 4-5 percent annual growth."

"Estimates for the number of Eastern Europeans — mostly Poles — living in Ireland range from 150,000 to 300,000. Since the mid-1990s Ireland also accepted an estimated 30,000 asylum seekers, especially from Nigeria, Africa’s most populous country," according to the article.

"Compared to the United States, the influx may not appear significant. Ireland remains nearly 95 percent white. But in a country that had virtually no people of color just a couple of decades ago, the change on the ground is unmistakable."

For example, Dublin is trending toward multiculturalism.

"Parts of north Dublin, chiefly Parnell Street and nearby Capel Street, are developing into the country’s first Chinatown….On the south side of Dublin's River Liffey, the influx of young people from across Europe has helped the emerging arts and cafe culture in the trendy, cobble-stoned Temple Bar district rival its better known continental counterparts."

Still, the transition hasn't been an easy one across the board, and there are incidents of discrimination against immigrants. One of the more egregious examples is that, "In Balbriggan, a Dublin suburb, children of African immigrants found themselves attending an all-black school this fall because the country’s overcrowded education system could not find a place for them in any existing schools. The incident was blamed on a paperwork snafu, but suspicions of racism lingered."

I find it hard to believe that this really was the result of a problem with paperwork. But this situation clearly shows that Ireland is still experiencing growing pains. While it's doubtful that "melting pot" is ever going to be the number one term people use to describe Ireland, hopefully the lesson of acceptance will take root.

Cambodia: Real Estate Boom Widens Growing Gap Between Rich And Poor

2008-03-14T16:00:00.000-07:00

Foreign investment in Cambodia has caused an upsurge in construction that is furthering the gap between the rich and the poor in the country.

"Cambodia is experiencing a construction boom fueled by foreign investment, particularly by South Koreans, and buying and selling among the country's few nouveaux riche -- while leaving the poor majority behind," according to a recent article in the Taipei Times.

"The biggest projects are being funded by South Korean investors and companies, which have been the leading investors in Cambodia following the resumption of diplomatic ties between the two countries in 1997. Investment and tourists from South Korea have surged following a 2006 visit to Cambodia by former [South Korean] president Roh Moo-hyun," according to the article.

The disparity between the rich and the poor in Cambodia is so great that about 10 percent of the population owns nearly 90 percent of the land in Cambodia, Naly Pilorge, director of the nonprofit human rights group Licadho, said in the article. Such a situation could result in social and political unrest.

Hospitals have been torn down and replaced with condominiums and residents in run-down areas have been displaced.

"Prime city land prices have tripled over the last two years to US$3,000 per square meter. Those kinds of returns have drawn rich and middle-class Cambodians, as well as those living abroad," according to the article. And while real estate prices in Cambodia have risen dramatically in the last few years, they are still lower than real estate prices in Vietnam and Thailand.

Construction begins in Phnom Penh next month on Cambodia's first luxury residential building, a 42-story tower that will have 500 apartment units, each priced between US$112,000 and $1.8 million, according to the article. Half of the units have already been purchased. The tower will be the tallest building in Cambodia.

"Thrilled with the boom, Prime Minister Hun Sen has said it has been made possible by the political stability he has brought. In a recent speech he warned that if he is not re-elected in July elections, property prices could nosedive," the article said.

In addition to the political ramifications of the construction boom--many developers have connections with Cambodian government officials, and some suspect that much of the cash going into the real estate boom is the result of money laundering--there are ramifications for the nation's impoverished citizens.

"Poor residents like Chhorn Et, the former slum dweller who was moved outside the capital, are left to cope with a stark reality in their new village, which has no running water or sewage system," according to the article. "Although each family has been given a small piece of land, they complain of the lack of means to support their livelihoods. They have to travel daily to the capital to do odd jobs as motorbike taxi drivers, construction workers or scavenge for bottles and cans to sell to buy food. Many of them are too poor to afford a latrine and have to use a nearby rice field as a toilet."

Small Business Ownership And Black Women

2008-03-13T11:15:00.000-07:00

In my previous post, I mentioned the hardships that many black women suffer because of the high rate at which they are given subprime loans, which lead them to be among the minorities who suffer foreclosures at higher rates. I cited some essays published in the 2008 edition of The State Of Black America, an annual report published by the National Urban League (NUL) since 1976.

The report also focused on black women in small business, the sectors in which most small businesses owned by black women are concentrated, the amount of revenue these businesses generate and how they might generate more.

"Businesses owned by black females employed more than 23 percent of workers at black-owned businesses," Lucy J. Reuben, a visiting professor at Duke University, wrote in an essay published in The State Of Black America. "More than 45 percent of BWBEs [black women-owned enterprises] concentrate in health/social services and retail trade industries. The health/social services sector alone accounts for more than 30 percent and the retail trade sector accounts for nearly 10 percent of BWBEs."

"Although BWBEs are concentrated in sectors generating low revenues, they paid
their employees more than $3.9 billion, which is an amount that could provide the
median U.S. household income for more than 75 thousand families. At the lower level of
median black household income, BWBEs provide payroll dollars that would be adequate
to support more than 110 thousand families," Reuben wrote. "As such, businesses owned by black females provide a source of revenue for household stability as well as increases in the tax bases of numerous states and municipalities."

Reuben also noted that businesses owned by black women employ one worker for every $74,000 of revenue the business generates. In contrast, all black-owned businesses employ one worker for every $87,000 of revenue and all female-owned businesses employ one worker for every $109,000 of revenue.

So, since businesses owned by black women employ more workers with less revenue, how do businesses owned by black women start generating more revenue, leading to more jobs and boosts to the economies of their communities?

"Recommendations for building upon the strength and success of BWBEs include
increasing the share of black women-owned business in higher skilled, higher
technology sub-segments of industries in order to increase revenue streams and profit
margins and increasing microfinancing opportunities for small start-up businesses," Reuben wrote.

Subprime Loans And Black Women

2008-03-07T07:57:00.000-08:00

I posted last week about the correlation between foreclosures and minorities. The National Urban League (NUL) released a report yesterday that provided additional numbers to back this pattern up, tracing the correlation back to subprime loans.

"With 45.8 percent of African-American households headed by women vs. 13.6 percent of white households, black women are particularly hard hit when considering issues such as subprime lending," according to a NUL press release about the report, called The State of Black America.

The State of Black America, published annually since 1976 by the National Urban League, covers issues critical to black America. Last year's report focused on black men and the current report focuses on black women. The report covers a wide variety of issues, but I am going to focus on one issue first: homeownership.

"Homeownership is a cornerstone of the American dream, and home equity an important path to prosperity as a foundation for acquiring other assets like a college education, a small business and a secure retirement. Fixing the subprime market is important, but homeownership can still remain within the reach of the less affluent if the focus is shifted toward encouraging a higher savings rate," Lisa Mensah, executive director of the Initiative on Financial Security, wrote in an essay published in the report.

Americans across the board are dismal savers (for more information, see our previous article on Americans' Negative Savings Rate). Mensah proposed a down payment savings account, called a Home Account, with a 50 percent government match on their savings--up to $5,000--that could only be used by first-time, low- and moderate-income homebuyers. In theory, this would decrease the dependency of such homebuyers on subprime loans and allow more of them to purchase homes they could actually afford. The ability to afford a home could boost the economic standing of black Americans.

"Nearly two-thirds of the wealth possessed by African-American families is in the form of home equity. Without homeownership, most of these households own very little and have few opportunities to build economic security," Andrea Harris, president of the North Carolina Institute for Minority Economic Development, wrote in an essay published in the report. "Half of all African-American households with children are headed by women; therefore, homeownership is an important economic advantage for these families."

These women face serious economic disadvantages, though. "Subprime loans have gone disproportionately to women, and...African-American and Latina women have the highest rates of subprime lending when compared to all other Americans, especially white men who receive the lowest share of subprime loans," Harris wrote.

"Over half of all loans made to black borrowers in 2005 and 2006 were subprime…African-American women account for 48.8 percent of all African-American subprime borrowers in 2006," she wrote. "The subprime mortgage crisis will drain $213 billion in wealth [from] black Americans, producing for African Americans the greatest wealth loss in modern U.S. history."

Not all the news in the report was so dire, though; check back later for my post on small business ownership among black women.

Online Dating Can Lead To Marriage

2008-02-29T15:06:00.000-08:00

I am writing this post as someone firmly entrenched in my generation. I am a member of Generation Y, Generation Next, the Internet Generation, Millennials or whatever other term people choose to apply to people who are roughly twentysomething (full disclosure: I was born in 1982).

I remember my dad bringing home our first household personal computer when I was seven years old. I remember Prodigy. And my generation has been around computers long enough to fondly remember the computer games we played in elementary school--most notably, The Oregon Trail. Chances are good that if you approached a random twentysomething on the street, they could regale you at great length with stories of oxen dying when fording rivers, hunting for food by pressing the space bar, trying to navigate The Dalles and perhaps dying from cholera.

A 2007 study by the Pew Research Center found that people of my generation "use technology and the internet to connect with people in new and distinctive ways."

I have several friends and family members who have dated--and even married--people they met online. "17 percent of online daters--or nearly 3 million American adults--have turned online dates into a long-term relationship or marriage. That's exactly the same number of couples in America who say they met in church," according to Mark Penn's book Microtrends.

What may shock some grandmothers (though certainly not my own) is widely viewed as socially acceptable behavior these days.

What in the world does this have to do with investing? Opportunity. Millions of people want to find their soul mate, or at least their next Mr. or Ms. Right Now.

"Nearly 1 in 4 single Americans who are looking for a romantic partner--or about 16 million people--use the 1,000 or more dating Web sites out there. That includes almost 1 in 5 Americans in their 20s, and 1 in 10 Americans in their 30s or 40s," Penn wrote.

These sites, according to a recent New York Times article, generated nearly $650 million in 2006.

While there are big dating websites already, such as Match.com, individual investors could start their own niche dating websites. Starting an online dating service was on NuWire's list of the top 5 romantic investments.

And why not? Surely there are left-handed people or baseball fans or Toyota Prius drivers out there looking to find a date. Why not give them a platform to do so--and maybe make a buck while you're at it?