CHICAGO, Jan. 14 (UPI) -- With the national unemployment rate at 5.8 percent, times are tough for U.S. job seekers no matter what their qualifications.
A report by outplacement specialist Challenger, Gray & Christmas released on Monday says the uncertain job market has prompted job-hunters to lower their expectations.
"Some job-seekers feel as if they must take the first job that comes along or else risk a prolonged period of unemployment," said John A. Challenger, chief executive officer. "Unfortunately, in many cases taking the first available job often means taking a substantial reduction in pay."
Challenger said it took unemployed workers more than three months (3.04) to find a new job in the fourth-quarter of 2001.
From January through September 2001, the study said, 17 percent of those losing their jobs were rank-and-file employees making less than $50,000 a year, but that number rose to 34 percent in the fourth quarter. At the same time just 33 percent of discharged workers were executives and managers making more than $85,000, compared to 47 percent in the first three quarters of last year.
"This shift could be the result of several factors, including the possibility that companies have cut all they can from their executive and managerial ranks and have still not found profitability," said Challenger. "Therefore, cuts now must be extended further down the corporate later."
According to Challenger job seekers are downgrading salary requirements just to get a paycheck. Only 77.6 percent of job hunters found jobs that paid as well or better than their former positions, the lowest number since the firm began its quarterly Job Market Index in 1986.
The Job Market Index is based on quarterly interviews with discharged managers and executives in a wide range of industries.
"Job seekers are fearful," Challenger said. "They see their retirement funds shrinking. They see people lined up around the block at job fairs. Those over 50 believe no one will hire them. They hear about former dot.commers living in homeless shelters. Maybe it is because we are coming off one of the greatest economic expansions the country has ever seen, but anxiety over joblessness has escalated dramatically."
