The Great Reset: College & Careers

Since my last blog post, the construction dust of the Great Reset has started to settle.  We did not ask for this Brave New World of lockdowns and social restrictions, but we grown-ups have gamely attempted to adjust to it. 

It is not easy to be so greatly jarred out of our comfort zone.  Should we expect things to go back to normal soon?  In a few years?  During our lifetimes?

Over the past few months, I have noticed a bellwether change.  Money and status -- elements of modern life that used to be of paramount importance -- have lost their luster.  If you are not driving a quarter-million-dollar sports car by the time you turn thirty, maybe it is because that goal has become meaningless.

New priorities are emerging.  People are assessing who they are, what they have, and where they want to be right now.  The five-year plan, once the hallmark of a business professional, is rarely brought up in an interview anymore.   How could applicants possibly know what they will be doing, let alone what the world will look like, a few years from now?

 

Social isolation has wreaked havoc with colleges and careers. 

 

Let’s look at the pandemic’s impact on higher education.  With many universities closed, classes have moved online.  This is not the way that most students envisioned pursuing their academic dreams.  When the dorms closed, the social atmosphere evaporated.  Where is the sense of camaraderie created by embarking on this big adventure with one’s classmates?  How will students build the priceless lifelong friendships that college inspires? 

Another joy of higher education is taking classes taught by that guy – the professor everyone loves, who cracks jokes while he compacts the rise and fall of the Roman Empire into ninety minutes.  Devoid of a lively on-campus environment, education breaks down into cold, mechanical steps: read the chapters, write the paper, take the test.  The computer screen is both a window and a barrier.  We can see and hear the teacher, but interaction is strained. 

Online classes, therefore, demand a higher level of self-motivation.  If attending college is far more about earning a piece of paper than enjoying the journey, students will have to decide if that goal is worth both the cost and the effort.  Before the pandemic, nearly half of college students dropped out before the end of their freshman year.  Will we see that statistic climb in 2020?

Let’s suppose that students – especially those who are close to graduation – chug through their remaining classes and earn their degrees.   Now they are applying for jobs…side by side with over thirty million people who lost their steady paychecks during the pandemic.  

The competition for good jobs is fiercer now than during the Great Recession. 

And that economic downturn was no cakewalk, as anyone who survived it can tell you.

About ten years ago, an interesting phenomenon emerged: after many jobs were eliminated and unemployment benefits ran out, millions of people disappeared.  Poof.  Gone.  No, not raptured to a better place.  They were still here in the Earthly realm.  But they stepped outside of The System.

During the Great Recession, the government expected laid off workers to either find another job or go back to school and train for a new career.  But when millions of former employees fell off the radar, data analysts coined the phrase, “discouraged workers” to explain their absence from labor reports.

Discouraged was an inaccurate label.  The truth is that these former employees reinvented themselves.  They discovered new ways to earn money.  They created small businesses.  They raised alpacas and created artisan goods.  They built tiny houses from reclaimed materials.  They started blogs and vlogs.  They sold their furniture, bought sailboats, and traveled the world. 

They had adventures.

Some eventually returned to the nine-to-five world, with the confident and fearless expectation of one day again setting out into the unknown.

Bloggers are armchair sociologists; we analyze trends and guestimate what will happen next, tasks infinitely more challenging in 2020 than ever before.  Once the economy improves, I predict that we will see a greater variety of jobs return (albeit with online interviewing, social distancing, and other modifications).  This will improve the odds for job seekers to find a position related to their education and work experience.

As the lockdowns and social restrictions continue, however, not only is society reinventing itself, but also many employees are examining their job duties, their working conditions, and their career goals.  Just as in the Great Recession, it is likely that we will continue to see working-age adults pursue options – temporarily or permanently -- outside of the traditional job market.  

Your Job Search During Coronavirus

It’s a mind-boggling statistic: in the past three weeks, the coronavirus has cost 17 million Americans their careers.

Is it possible to find another good job during a pandemic?

Yes, the employment outlook remains hopeful.  Even with the challenge of social distancing, many companies are hiring and new jobs are emerging.


What Happened to Us? 

When I wrote my January 21st blog post, I did not know that the world was about to fall off its axis.

In the past few months, the Covid-19 pandemic has threatened the survival of the human race, robbed families of loved ones, devastated the global economy, and annihilated millions of careers.

The 21^st century lifestyle that we Americans took for granted has slipped away.  We have flashbacks about slogging through our old daily routines, a paper cup of coffee in hand.  We commuted to our jobs.  We had lunch with coworkers.  We attended weddings and baby showers.  We jetted to Hawaii or Paris for milestone anniversaries.

Today, pajamas are haute couture.  We brew our coffee at home and search the news for a shred of hope.  Things we complained about a few months ago seem trivial in this strange new era of travel bans, social distancing, and self quarantines. 

Our careers sit as idle as the cars in our driveways, for the economic impact of the virus has been fierce.  When the stock market plummeted into bear territory, employers began cutting staff.  Layoffs – something few people have thought about since the Great Recession – have returned like a bad dream. 

If you lose your job during the coronavirus outbreak, what should you do? 


10 Steps to a New Job

Becoming unemployed during an economic boom is vexing; getting pink-slipped during the double whammy of a global pandemic and a financial downturn is beyond stressful.  Are we in a recession?  A depression?  We do not even know what words accurately describe this disaster. 

During unnerving times like this, it is important to plan and proceed with clear-headed action.  Think about occasions in the past when you have changed jobs.  Maybe you relocated to a new city.  Or you sought out a higher-paying position.  How did you make that successful transition?

Here are some guidelines for getting back to work:

1.  Dust off your resume.  Add your latest work experience, including your job title and dates of employment.  When you list the duties of your last position, emphasize your responsibilities and achievements.  Describe ways that you exceeded your company’s expectations and helped build its success.

2.  Line up professional and personal references for prospective employers to contact.  Ask your former boss to email you a letter of recommendation.  

3.  Practice interviewing scenarios with your mom (that’s what moms are for!) or a close friend.  Recruiters will question you in detail about your knowledge, skills, and abilities.  Showcase the qualities that make you stand out from the competition.

4.  Good jobs still exist; your mission is to find them.  Make a list of major employers in your area and search their websites for contact information.  Read employments ads on Internet job boards.  Also, check with your college’s alumni placement department.

5.  Employers often fill jobs through word-of-mouth referrals, so network with your family, friends, neighbors, former co-workers, and business colleagues.  Reach out to people from your past: even your high school Chemistry teacher may know of a company that’s hiring.  Stay alert to opportunities!  You could overhear other customers at a supermarket discussing job openings at a local business. 

6.  Don’t pin all your hopes on an interview at one company; send your resume to multiple hiring managers.  Set daily and weekly goals for submitting applications, and set up a spreadsheet to track when and where you sent them.

7.  Expand your job search outside of your current field.  Does your resume list education, skills, and/or work experience that are transferrable to other positions?   Think about your ambitions when you were growing up.  Did you land your dream job, or is this the right time to pursue a career change?    

8.  A recruiter may contact you by text, phone, or social media.  When you proceed to an in-person interview, expect to follow social distancing precautions.  Handshakes are so 2019.  Take cues from the hiring manager about substituting a fist bump, elbow tap, or a friendly wave from six feet away.

9.  As an alternative to being a payrolled employee, consider becoming an independent contractor.  Companies like Uber and Instacart, for example, recruit self-motivated individuals with customer service skills and safe driving records.  

10.  Explore other self-employment opportunities.  It is possible that building your Amazon shop’s inventory or ghostwriting novels on Fiverr could give you a much-needed financial boost during your job search.  With a strong work ethic, you may even turn your side hustle into full-time work.


Who’s Hiring?

The list of the nonessential companies that have temporarily or permanently closed their doors grows every day. The travel and hotel industries have been hard hit.  With social distancing restrictions, museums, theaters and sports arenas have gone silent, as well. 

We should maintain three positive thoughts during this crisis:

>> When one door closes, another opens.  Although the pandemic has eliminated millions of traditional jobs, shelter-in-place directives have created the need for a large variety of other positions.

>> Once the coronavirus subsides and the economy recovers, people will begin to travel and attend social events again.   Employers in these industries will resume hiring, which will increase the variety of available positions.

>> At that point, some companies will rehire their former workers.  This is a win-win scenario.  Not only will these employees once again earn steady paychecks, but also their employers will save the substantial time and money required to train new staff.

In the present time, where are applicants landing interviews and job offers? 

The answer is in the news reports we wake up to each morning.  Industries have been divided into two categories: essential and non-essential.  We’re seeing the greatest gains in job creation in the businesses that remain open during the pandemic, which include:

• Supermarkets
• Restaurants (takeout and delivery services)
• Big Box Retailers (for example, Costco, Wal-Mart, and Target)
• Dollar Stores and Convenience Marts
• Transportation Companies
• Telecommunications
• Healthcare
• Medical Research Firms

Many of these businesses are actively recruiting store clerks, stockpersons, delivery drivers, and security officers.

If you are looking for something different, be reassured that these are not the only jobs available.  Identify essential companies, check their websites for job openings, and keep a flexible attitude.  

Employers continue to seek qualified applicants for a myriad of front and back office positions: Management, Sales, IT professionals, Engineers, Safety Consultants, Finance Managers, Human Resources, Customer Service, etc.

Pro job hunter's tip:  Even if a company is not advertising a job you are interested in, you can send your resume to the hiring manager with a polite note requesting to be kept on file for consideration for future openings. 

Please be aware that some HR departments may be running with a smaller crew and/or working from home.  This could cause delays in replying to job applicants.  Be sure that your resume includes several ways to contact you (cell, text, email, etc.). 

Conclusion

Employment is a two-way transaction.  Just as you rely on your paychecks to cover your bills, companies need qualified employees to run their operations.  If you’re looking for a job during this challenging time, keep your hopes up and your options open. 

Is a Philosophy Degree a Good Idea?

Despite all the buzz about STEM programs, why do so many people choose a low-tech major like philosophy?  Can a philosophy degree pave your path to financial success?

Philosophy majors are passionate about their field because it transforms their inner selves.  Philosophy courses help you develop the ability to think logically, make sound decisions, and communicate effectively – key skills in a variety of careers.

Why People Find Philosophy Fascinating

Philosophy – the pursuit of knowledge for its own sake -- has been around since the days of chariot races.  Thousands of years later, we’re still sharing the wisdom of Plato and Marcus Aurelius – no longer on scrolls, but on social media.

To outsiders, students in this discipline may seem as archaic as 1950s beatniks reciting Jack Kerouac poetry in a coffee shop.   Like slow fashion and the perfect omelet, philosophy requires free time.  You can’t right-swipe your way to wisdom.

Philosophy develops your ability to think critically and present arguments.  A philosopher -- equal parts optimist and pessimist -- examines the world and his own beliefs for answers to the Big Questions.  Why are we here?  What can we trust to be true?  Do we really know what we think we know?

When you choose this degree, you join an eclectic cadre of intellectuals.  Famous philosophy majors include former U.S. President Bill Clinton, game show host Alex Trebek, and veteran actor Harrison Ford.

Can You Earn Money With a Philosophy Degree?

The wisdom of earning a degree in, well, wisdom remains open to debate.  Some people insist that it’s on a par with a business degree; others are skeptical.  How can you earn a paycheck by debating whether a tree fell in a forest, if no one saw it fall?

To increase their employability, many philosophy students add a minor, a second major, or a graduate degree in a complementary field.  Popular choices include:

• education
• computer science
• math
• business
• law
• political science
• psychology
• history
• journalism

Regardless of which additional subject they choose, philosophy students typically excel at taking tests (even formidable, life-changing tests like the bar exam).

Careers for Philosophy Majors

A philosophy degree carries an air of intellectualism, respectability, and trustworthiness that suits a plethora of careers.  Although teaching is a traditional employment path for philosophy majors, many alternatives await.

Business.  Tales of philosophy majors who conquered the business world abound.  Patrick M. Byrne, the founder and former CEO of Overstock.com, became a cryptocurrency pioneer.  Gerald M. Levin built the legendary AOL Time Warner media empire.  George Soros became a billionaire investor and philanthropist.

Visionary bosses surround themselves with people who think outside the box.  If your interview at a Fortune 500 company veers into a discussion about probable impossibilities being preferable to improbable possibilities, Aristotle may give you an edge in landing the job.

Besides your analytical abilities, your writing skills will also come in handy on your way up the ladder.  When you become the CEO of your own corporation, you will draft a mission statement reflecting your company’s duties to society and memos praising your employees’ contributions toward achieving those goals.

Politics.  The idealism that philosophy inspires can grow into a desire to change the world.  Late Canadian Prime Minister Pierre Trudeau began his political career as a lawyer and an activist.  Campaigning and writing speeches for candidates are also ways to build your fame in the political arena.

Literature.  Philosophy has given us countless famous authors, including Alexander Solzhenitsyn, Mary Higgins Clark, and Philip K. Dick.  Great thinkers have created masterpieces in every literary genre, from historical epics to groundbreaking science fiction.  If writing books is your ambition, research skills and an active imagination will help you develop your thoughts for publication.

Entertainment.  If you can handle the challenges of global fame, show business (it’s called The Industry in Southern California, as if there is no other) may be your ticket to success.  Acting, writing, directing, producing – many positions exist in front of and behind the camera.

Comedy may not be pretty, but it’s profound.  Philosophy majors, familiar with human foibles and life’s ironies, often venture into stand-up comedy.  Steve Martin – actor, comedian, novelist, playwright, banjo player – is a Renaissance man who discovered creative ways to share his wry brilliance with the world.

Conclusion

The study of philosophy is a personal journey with far-reaching effects.  Someday you may have a dynamic conversation about life, truth, and reality with a prospective employer…and unexpected doors may open.

Should College Be Free?

When I spotted a recent news report about free college, I thought, “Free?  How is that possible?”  After some sleuthing, I discovered why free college is trending across the United States. 

Free college is a major phenomenon.  Just as there are no-cost options for kindergarten through Grade 12, this intriguing proposal to expand free tuition coverage would carry a student through at least two years of college.  A growing number of states offer free tuition at community colleges, vocational schools, and even universities.  

Community colleges play an important role in this visionary plan due to their practical career path offerings.  Associate degrees have assisted millions of people in finding employment in medical, dental, technology, and other well-paying fields.  Two-year degree programs are a major cornerstone of the academic world, for nearly half of all graduates with a bachelor’s degree started their studies at a community college.

Why Is Free College a Hot Topic?  

In short: crushing student loan debt.

Besides the nose-to-the-grindstone part of sitting in class, taking notes, writing papers, and cramming for exams, a serious obstacle for many students is the humongous cost of the whole adventure.  

It’s one of the top expenses Millennials complain about (along with skyrocketing rents and health insurance premiums).  Student loan debt is holding back millions of young Americans from buying a house, getting married, and starting a family.

Imagine not having to take out those loans in the first place.  To begin working after graduation without that debt load would be hugely liberating – and diverting income into clothing, travel, housing, and weddings would give retailers a much-needed economic boost.

Where Does This Free Money Come From?

I found the answer to this question at Free College Now. The financing is from many sources, including state budgets, community donations, philanthropists, corporations, and investment funds.  

This extraordinary project is the result of planning by senior elected officials and policy makers – let’s hear it for the Boomers! – who chose to pay their own success forward by heeding the advice of late President John F. Kennedy: “Ask not what your country can do for you, but what you can do for your country.”   

The bipartisan free college concept unites both liberals and conservatives with the common goal of strengthening America’s talent pool, thereby making it easier for companies to find qualified job applicants.  One example of this growing crisis: the U.S. is experiencing a shortage of teachers (about 112,000, in fact), which has prompted the hiring of trained professionals from other countries.

Why Offer Free College?

The path to a degree can be filled with financial obstacles, like moving out of one’s childhood home and learning how to support oneself. Over half of students struggle with college expenses, and thirty percent drop out by the end of their freshman year. 

By smoothing these road bumps, free college can dramatically improve graduation rates.  Not only can this innovative program help students achieve their immediate goal of attaining a degree, but it can also significantly improve their quality of life by increasing their lifetime earnings. 

A college degree is widely revered as the gateway to better pay.  In 2018, the median weekly pay for workers with a high school diploma: $730.

With an associate degree, the pay climbed to $862.

And with a bachelor’s degree: $1,198.

Is Everything Free? 

Erm…not quite.   Be sure to read the fine print.  Some free college programs only cover tuition.  

That leaves out fees, books, computers, transportation, food, and housing – necessities to be covered by other means.  Some applicants who qualify for a scholarship, a Pell grant, or other financial assistance may obtain help with these expenses. 

Standard frugal measures may also have to kick in: living with parents or roommates, working a part-time job, buying secondhand textbooks, and learning fifty ways to eat ramen noodles.

What About the 44 Million Americans With Student Loan Debt?

While free college programs benefit new undergraduates, these plans are not designed to lighten the debt load carried by former students.  The same options remain: pay monthly installments, negotiate/refinance/postpone payments, or apply for a student loan forgiveness program.

However, a light beckons in academia’s ivory towers.  The spread of free college plans has sparked debates in government circles about wiping out student loan debt, as in... Just.  Make.  It.  Go.  Away.  

When will this happen?  Who will pay off these loans?  How will this affect traditional college financing?  It is possible that we will learn the answers to these questions in the near future. 

What Does Free College Mean For 529 Plans?

For years, 529 plans have been praised as a fantastic way to grow savings for college expenses.  Although tax benefits vary from state to state, the general concept is that the funds can be withdrawn tax free to pay for tuition, books, dorm living, etc. 

However (more fine print), if the money is taken out for expenses unrelated to education, the withdrawal is subject to an extra 10% tax penalty.  The rationale is to forgo the immediate thrill of an Aspen skiing vacation for the delayed gratification of a Harvard degree.

Today only 2.5 percent of US families have a 529 plan.  Perhaps the steady drip of twenty-five dollars a month into a college savings plan makes a quarter-million-dollar degree seem unattainable.  Additionally, the devastating effects of the Great Recession have required many families to focus on immediate needs instead of long-term savings goals.

What Else Will Become Free?

Today, community colleges.  Tomorrow…Yale?  Vassar?  Amherst?  

Free college can lead to greater diversity on university campuses, with people from all socioeconomic groups learning not just from their professors and textbooks, but also from each other.  If finances no longer limited the pursuit of higher education, America would begin to return to its roots as a land of, by, and for the people.  

A Utopian idea, indeed.  

It occurred to me that, in Scandinavian countries, students often take off one year between  high school and college.  They use this free time to travel to other countries and to learn new cultures and languages.  This time of exploration, which often includes paid or volunteer work, helps them to decide on a college major and a career path.

Maybe a free gap year plan -- similar to exchange student programs, with travel and housing expenses covered -- will emerge as an outreach system between the U.S. and other countries.  Combined with free college, a program like this could create a corps of student ambassadors eager to learn about world issues.

Free college may become not only the solution for the rising cost of higher education, but also an effective way to recruit and develop a new generation of leaders. 

The Quest For Your Next Paycheck

In 1960, the average salary in the U.S. was $5,315.

The average cost of a house was $11,900.  Mortgages were often 10-year loans, since house prices were about double the average worker’s annual salary.

Even more amazing: it was possible to pay off that mortgage early.

In that era, many people worked their way through college, bought nice cars, houses, and vacation timeshares, raised children, put them through college, invested in the stock market, retired early and traveled the world – because the low cost of living enabled them to save half of their income.

Hmm...  Let’s look at America today.

Nearly two thirds of grownups are in the workforce. 

Almost half of all employees also have a side gig. 

So, a middle-class lifestyle that required one paycheck per household in the 1960s and two paychecks per household in the 1990s -- today necessitates two paychecks per person. 

The median salary in 2019?  $47,216. 

The average sales price of a new home in August 2019: $404,200.

Let me grab my calculator…oh, never mind.  Let’s just say that a new house no longer costs double the average worker's salary. 

As income stagnates and the cost of living rises, there is a growing urgency to earn that next paycheck from full-time employment, a second job, or a side hustle.   With today’s dollar worth a few slices of bread instead of -- as in the 1960s -- four entire loaves, we need to find ways, literally, to earn more dough.

To further complicate matters, you may transition from one job to another more often than you expected.  The example set by the Baby Boomers: an average of 12.3 jobs held between age 18 and 52.  Changing careers may require more education, and so the cycle of college / job search / new career can repeat throughout our lives.

To make good employment decisions, it is smart to gather and analyze useful information.  That is the goal of this blog.  I will present a panoramic view of the following topics:

• College degree programs

• Job search techniques

• Career opportunities

• Part-time jobs

• Side hustles

• Full-time entrepreneurship

• The popular FIRE movement (Financial Independence, Retire Early)

• Work options after retirement

I welcome you to travel with me on this journey, and I look forward to reading your comments and feedback.

This blog is my personal opinion based on my research and observations.  No information posted on this blog is intended as advice for the reader.  You are encouraged to use your critical thinking ability to form your own opinions and to determine the course of your life and career.