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Jobless in America

Aired May 05, 2003 - 14:52   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


MILES O'BRIEN, CNN ANCHOR: Well, the government would tell us the economy is recovering, but the nation is facing one of the worst labor markets in decades. As part of our new weeklong series, "Jobless in America," Allen Chernoff of CNN looks at the challenges facing those out of work.
(BEGIN VIDEOTAPE)

ALLEN CHERNOFF, CNN CORRESPONDENT (voice-over): Diana Kritsonis had a good job two years ago, a computer programmer in Seattle earning $75,000 a year. But since then, she's been unable to find steady work.

DIANA KRITSONIS, UNEMPLOYED: You start taking it personally, like, Why can't I get a job? And you start thinking that other people are thinking, Why can't she get a job?

These are stacks of bills.

CHERNOFF: The divorced mom had to sell her home, had her car repossessed, and with bills and debt mounting, the banks have blocked her credit cards.

KRITSONIS: Right now, I'm just in survival mode. You know, it's what do I do today? What can I do today? And try not to think too much about tomorrow because you can really overwhelm yourself.

CHERNOFF: There are tough-luck stories like Diana's in every business, every part of the country because so many companies have cut spending.

The labor market has encountered a perfect storm, a turbulency of trouble. Not only a weak economy here, but also overseas. Not only the dot com bust, but also a telecom meltdown. Not only a depressed stock market, but also a collapse in mergers and acquisitions.

Add corporate scandals that are obliterating jobs, the fear of terror bankrupting airlines and hurting the entire travel industry. The war in Iraq only made matters worse.

UNIDENTIFIED FEMALE: I don't know if we should ignore it or...

CHERNOFF: Gabriela Millie (ph) lost her finance job in Miami more than a year ago. Her husband, Jonathan, is about to lose his energy consultant position, and they have a baby on the way. UNIDENTIFIED FEMALE: When the baby comes and if we're both unemployed, we'll just do whatever it takes. And if it means taking a per hour job, we'll just have to do that.

PAULA JAYE, ESPOSITO-JAYE ASSOCIATES: I'll meet you in your office.

CHERNOFF: Paula Jaye, a veteran career consultant, works with laid off executives.

JAYE: Many of my clients are feeling stressed beyond belief. People are having a very, very tough time. People are in the market, in the job market longer than they had expected. It's not unusual for many of my clients to be looking for a job for nine months or a year or more.

CHERNOFF: The unemployment rate is 6 percent, well above the low of 3.9 percent in December of 2000. But historically, it's still not that high.

The rate, however, doesn't tell the whole story. The number of discouraged workers, those who have given up hunting for jobs, is at a nine-year high. Nearly 5 million people are working part time but want full-time jobs, and it's been 10 years since job hunters were out of work for so long.

Yet still, counselors say, the data fails to fully capture the job slump.

TRUDY STEINFELD, NEW YORK UNIVERSITY: I've been in the career development field for over 20 years, and I can say without a doubt that this is probably the worst job market that I have seen in over the 20 years that I've been involved in this field.

CHERNOFF: College seniors are facing a harsh entrance into the real world.

UNIDENTIFIED FEMALE: I didn't expect it to be this hard to find a job in the field that I was working in. I didn't think I'd have to be searching in almost any field.

UNIDENTIFIED FEMALE: In no way, shape, or form would I have ever expected it this hard to find a job after or approaching graduation.

CHERNOFF: As graduating students hunt for work, they're facing yet a new hurdle: layoffs in the public sector. States and municipalities are chopping jobs to trim budget deficits.

(on camera): The economy is supposed to be recovering, but there's no sign of a pickup in hiring. Companies first have to see an improvement in their own prospects before regaining the confidence to hire new workers. So at the moment, the nation is experiencing a jobless recovery.

Alan Chernoff, CNN, New York.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired May 5, 2003 - 14:52   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
MILES O'BRIEN, CNN ANCHOR: Well, the government would tell us the economy is recovering, but the nation is facing one of the worst labor markets in decades. As part of our new weeklong series, "Jobless in America," Allen Chernoff of CNN looks at the challenges facing those out of work.
(BEGIN VIDEOTAPE)

ALLEN CHERNOFF, CNN CORRESPONDENT (voice-over): Diana Kritsonis had a good job two years ago, a computer programmer in Seattle earning $75,000 a year. But since then, she's been unable to find steady work.

DIANA KRITSONIS, UNEMPLOYED: You start taking it personally, like, Why can't I get a job? And you start thinking that other people are thinking, Why can't she get a job?

These are stacks of bills.

CHERNOFF: The divorced mom had to sell her home, had her car repossessed, and with bills and debt mounting, the banks have blocked her credit cards.

KRITSONIS: Right now, I'm just in survival mode. You know, it's what do I do today? What can I do today? And try not to think too much about tomorrow because you can really overwhelm yourself.

CHERNOFF: There are tough-luck stories like Diana's in every business, every part of the country because so many companies have cut spending.

The labor market has encountered a perfect storm, a turbulency of trouble. Not only a weak economy here, but also overseas. Not only the dot com bust, but also a telecom meltdown. Not only a depressed stock market, but also a collapse in mergers and acquisitions.

Add corporate scandals that are obliterating jobs, the fear of terror bankrupting airlines and hurting the entire travel industry. The war in Iraq only made matters worse.

UNIDENTIFIED FEMALE: I don't know if we should ignore it or...

CHERNOFF: Gabriela Millie (ph) lost her finance job in Miami more than a year ago. Her husband, Jonathan, is about to lose his energy consultant position, and they have a baby on the way. UNIDENTIFIED FEMALE: When the baby comes and if we're both unemployed, we'll just do whatever it takes. And if it means taking a per hour job, we'll just have to do that.

PAULA JAYE, ESPOSITO-JAYE ASSOCIATES: I'll meet you in your office.

CHERNOFF: Paula Jaye, a veteran career consultant, works with laid off executives.

JAYE: Many of my clients are feeling stressed beyond belief. People are having a very, very tough time. People are in the market, in the job market longer than they had expected. It's not unusual for many of my clients to be looking for a job for nine months or a year or more.

CHERNOFF: The unemployment rate is 6 percent, well above the low of 3.9 percent in December of 2000. But historically, it's still not that high.

The rate, however, doesn't tell the whole story. The number of discouraged workers, those who have given up hunting for jobs, is at a nine-year high. Nearly 5 million people are working part time but want full-time jobs, and it's been 10 years since job hunters were out of work for so long.

Yet still, counselors say, the data fails to fully capture the job slump.

TRUDY STEINFELD, NEW YORK UNIVERSITY: I've been in the career development field for over 20 years, and I can say without a doubt that this is probably the worst job market that I have seen in over the 20 years that I've been involved in this field.

CHERNOFF: College seniors are facing a harsh entrance into the real world.

UNIDENTIFIED FEMALE: I didn't expect it to be this hard to find a job in the field that I was working in. I didn't think I'd have to be searching in almost any field.

UNIDENTIFIED FEMALE: In no way, shape, or form would I have ever expected it this hard to find a job after or approaching graduation.

CHERNOFF: As graduating students hunt for work, they're facing yet a new hurdle: layoffs in the public sector. States and municipalities are chopping jobs to trim budget deficits.

(on camera): The economy is supposed to be recovering, but there's no sign of a pickup in hiring. Companies first have to see an improvement in their own prospects before regaining the confidence to hire new workers. So at the moment, the nation is experiencing a jobless recovery.

Alan Chernoff, CNN, New York.

(END VIDEOTAPE)

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com