Talkback: Lost your job or taken a pay cut?

“When everyone spent all these years like pigs–we teachers weren’t.” – You are a teacher and draft sentences like that??? Maybe THAT’s why you didn’t get a raise.

Yes, it is important to understand that “official” U.S. unemployment figures only take into consideration those currently receiving unemployment benefits. And that those folks whose benefits have stopped before they’ve found new work basically then “dispapear” from the publically reported numbers. This time around, the real thing to realize is that folks who recieved their first 26 weeks of unemployment benefits, then their 1st emergency unemployment benefits extension of additional 13 weeks, then their 2nd emergency unemployment benefits of another 7 weeks may soon go into the statistical oblivion if they don’t get a new job before the end of benefits. Meaning that the folks looking the longest and hardest may really fall “off the radar”, and therefore the U.S. unemployment numbers are actually more onerous than are being reported officially.

Boy if theirs one thing our government can do is find ways to increase taxes. Just what we need, a hefty gas tax. When alternatives are readily available then I can see a tax hike on fossel fuels. Cars create most of the pollution so get us more cars that don’t pollute. Most industry don’t really care all that much and will only pass it down to us consumers. Now we pay gas tax and industry gets a free ride by passing it down to the consumer. Every business will pass it down to consumers and only burden the consumer with higher costs. We foot the bill for everybody. Come up with a fair plan that won’t allow industry to pass it down and maybe it might work. That won’t happen.
D. Eisenhardt

Honestly, I don’t feel too badly for those taking a cut or not getting a raise. In the last 18 years of being a teacher, 4 of those years there was no raise at all, oftentimes there are givebacks on our part regarding things like health insurance–with us paying more, and longer school days and years with no additional compensation. When we do get a raise it is never close to the cost of living–we get 2 or 3 and sometimes but rarely, 4%.

When everyone spent all these years like pigs–we teachers weren’t.

its all a big joke. have friends whos companies were bailed out by government funds still getting their 200-$300,000 bonuses. They are laughing all the way to the bank.

well being from michigan and working for a chrysler dealership i have taken a 7.00 hr pay cut ,i dont get an offer for a buy out or have the uaw to back my pay ,also my wife works for citi mortgage and they will be closing the ann arbor branch losing over 350 jobs …but they can spend 800 million overseas of are tax payers money
WHAT BS ,they have a to take a look at the spending over seas and get the jobs back in the USA

Engineering has been in a recession for 8 years. Offshoring is killing the technical professions. Pay cuts have become a fact of life.

I’m not sure if you’re referring to software engineering, but that’s where I can comment. In my particular case I’ve gone from earning about $60,000 8 years ago (with 4 years of experience) to now earning $140,000. Yes, my career has advanced and I’ve worked hard, but I’ve found no evidence that offshoring has had a permanent impact on the software engineering profession in general.

In fact, the BLS statistics also offer no evidence that off-shoring has had an impact. There are more people employed in software jobs in the US today than there have ever been.

No increases for 2009 and a mandatory unpaid week off during the year equates to -1.9% pay cut. We are among the lucky and are hoping for an economic turnaround before layoffs are necessary.

No raise for 2009, so count me as another with a pay cut. I plan on buying much less in 2009 than I did in 2008, screw the economy!!!

I’m probably in a similar position as George from Bethlehem, PA. I also work out of an EU based company and I believe that they are better at long term planning.
The U.S. has to stop thinking about the daily headlines. It will only spiral our economy into deeper spending and deeper trouble. I will be very disappointed if Obama pushes out plans that have less than 5-10 years for ROI. The U.S. has fallen to number 15 globally in broadband penetration according to the ITIF Broadband Rankings for 2008.
We have to take the Internet seriously or become a series of ghost towns. I have proposed a Consumer Minimum Infrastructure and Planning Bill.

No, I got a pay raise.

My pay has been cut to zero as I used to work for a major Financial Institute based in Boston. I drew the short straw in the November 2008 3000 person layoff consisting of “people of tenure”…

Let me tell you that it’s pretty cold out here… If I had a choice of taking a 10% pay cut or getting layed off, I’d take the cut…

As someone else has already noted though, it’s all about jacking the short term returns up to fatten up the CEO payout (in our case, our guy talks about the need for cost cutting, while layering ton’s of his cronies, and their cronies on at the top ).

Now, if I could only get my Congressman or Senator (Kennedy responded, but nothing from Kerry ) regarding the need for the government to help folks like me recapitalize ourselves by giving us tax free access to our 401k plans to retire our mortgages, I might be able to make it on a job that will pay 1/2 of what I earned before… And after all, at that rate, I’d now be somewhat competitive with the global rates professionals in China and India charge, so maybe a future job could stay US based instead of being “deported”…

As an IT professional with 20 years experience and MS in computer Science working in the NY metro area, I have seen my earnings going down every time I am forced to change a job.
I am on the market now, the base salary is capped at 33% LOWER than my last job a few months ago. Employers will NOT give you an interview without the salary cap. The bad thing is that my property tax and mortage amount remain very high, and the house price keeps going down and it is lower than my mortgage now!

No raise is equivalent to a pay cut these days. My health insurance went up 16% and I have am required to pay 25%.

Eight years same mortgage company as lead loan processor with 20 years experience. Laid off in August. Rehired with same bank as commission only loan officer with no benefits. Ouch.

I went from $125,000 in 2006 to this year I will make $78,000. I work in the mortgage industry, but I was in quality control. We were the department that NO ONE listened to when all these loans were being made the last few years that shouldn’t have been! I was layed off at one very large national mortgage company, then worked for one that filed bankruptcy and now work at another large national company where we have been told no raises or bonuses this year. The guy who sent the emai about no raises or bonuses this year cashed in a total of $27M in stock grants this year alone! Its those of us at the low end that are getting the shaft!

Yep, pay cut…laid off makes a pay cut from 1146/week to the maximum unemployment wage in Florida of 275/week!

I was in the mortgage business, too. I was an area manager originating loans and managing 2 loan centers. I went from making in excess of $225,000 to my last years earnings of $75,000. Talk about hard. I filed bankruptcy, drained my 401k and now may lose my house that I have owned for 7 years.

I’m an accountant, I work in the construction industry, no paycut yet but the controller is gone and I took a lot of extra work for the same salary, didn’t even get a year end bonus.

I am a contractor for a fortune 500 company. I not had a raise in over 5 years, and now I am now being asked to take a 10% paycut to stay on here.
Of course the managers here get huge bonuses,and those are not going away. but supposedly times are hard? Ha.

My company has instituted a global pay freeze. The positive is that they are not laying anyone off. I work in the chemical distribution business and my company has historically been frugal and we expect to see benefits from that in ‘09.

I was laid off in May and got a new job in August. It pays 30% less. I also lost a lucrative consulting contract earlier this year that I’ve held since 2006. Overall my income is down over 40% from 2007.

I took pay cuts in 2001 and 2002, when the dot-com bubble started to come down. My employer filed for bankruptcy and sold all the business units. No attempt to reorganize. All white collar jobs were lost through “consolidation” with the buyers of the business units.

After 2 years as an independent consultant, I landed a stepping stone job, and in 2005 became part owner in an management services firm. Never wanting to trust anyone again, I went for the American dream of ownership and it’s associated risks.

Since 2005, income increases have averaged 22%. 2009 forecast shows an increase of only 10%, due to scales of economy.

There are industries that are recession resistant. I lived the life of a layed off manager, and pulled myself up by my bootstraps.

Too many people this time around B & M. It’s a capitalist society people! It’s economic darwinism.

I for one am looking for the corrections in the labor markets, and look forward to winfall years in 2010-2012.

Yes, pay cuts 7 years running since 9/11. Too many jobs going overseas and diversification here domestically. Thanks to our wonderful leaders in Washington, the middle class is being decimated by ignorant, selfish policies promoted by the wealthy and stupid in Congress. My raises have always been less the the rate of inflation and always the excuse “Times are tough”. Strange, as I watch our stock continue to climb.

John, Las Vegas,

You mentioned the US being built on nothing. How about Vegas? Whats that built on? Crushed dreams? The only building taller than 5 stories that isnt a casino is the Wells Fargo building. Why are you working as an engineer in a city who’s economy is based on services, complaining about no raises?

I took a 7% pay cut towards the end of this year. I don’t live beyond my means, so I’m still able to pay my bills. Nonetheless, I’m trying to spend less money to make up for the pay cut. Paying attention to electricity usage, carpooling, eating out less, and looking for lower prices or even freebies in many aspects of life are all things I do regularly now.

I’m earning about the same as 8 years ago. The local median household income has dropped 10% (Larimer Cuunty) since 2000. Factor in 3% annual inflation and the median household has lost 30% of its buying power. I suspect the story is the same in other communities across the country. Its no surprise that cars sales have tanked, now that the home equity ATMs are shut down until further notice.

I’m with Nancy in Boston. No raises or bonuses this year, so yes – a pay cut.

This definitely hurts, but lucky for us we aren’t over leveraged or deeply in debt.

We’ll make it…

Lets see, went to making 20+/hr and now at 14/hr. Problem is that anything less and I am better off on unemployment, which I saw for 3 months. The sad part is, that I made more money when I was 20 than I do now. I was able to save and pay my bills. Now, the job market for me is more dreary due to a bankruptcy. I do ask myself all the time, what else should I do? At least I am not walking away from my mortgage… yet, but another pay cut and forget about mortgage, I’ll have to live with my parents.

I have worked for General Electric for 18 years and i have been laid off two times in those 18 years, loosing 2 years of service. I just went back in Sept.2008 after being laid off a year
and took a pay cut, when i got laid off in 2006 i left making $22.00 hr and when i came back in sept.2008 started at $13.31 hr. our union voted in II tier jobs as they are called, so 7 people that had worked for GE for 18 years came back at $13.31. Its hard working beside your fellow worker making less pay and then when you are working harder than those fellow workers not pulling their load, its a
head game. But with no jobs out there
i felt i had to go back to GE. I got all my same benefits which are great but don’t know for how long, GE is talking spin offs and buyouts so who knows what are future holds. This GE plant is in Lexington Kentucky

Our health insurance costs are going up by more than our raises resulting in a net paycut.

First of all, why are you crying? If you have just gotton a 20-50% pay cut
be thankful you have a job with some remuneration. What do you think – you are better than everyone else. If so,
why not do something about it! Start your own business and be your own boss and then see how hard it is to pay someone a SALARY! How many sales do you have to make in order to pay that ONE salary? If you knew the answer to that question – you wouldn’t be crying! Take responsibility for yourself for once — quit being a freeloader….and grow up! Make it HAPPEN! Don’t rely on others! Do it yourself. Good luck!

Nancy, it is not a pay cut if there is deflation.

I’m too not going to receive any raise this year. I was laid off earlier this year and found a job at higher level and pay. I’m not spending more because my salary is higher, I’m saving more (as my husband and I have been doing during these last years of salary increases). We also rent, a much cheaper option than buying for the last 4 years.

IBM cut contractors pay severely earlier this year. They cited economic conditions for the cut when they have continued to beat Wall Street’s earning estimates. I should have known better than going to work for a corporation that readily assists others in sending jobs offshore. They are twisting the knife in the back of America.

Worked OT because we had a shortage on staff for some business development/task orders. Wife got a raise, I’ll be getting a raise/bonus, and we paid off about $25K in debt from buying our house/furnishing/2 new cars with roughly $14k remaining (will be paid off by summer). Full time MBA student who finished an MS in August while working FT as a gov’t contractor, got another industry-standard certification as well. My customer loves me, my company and I hate each other but they paid for school so they won’t let me go and I can’t leave until 2010. So there are worse things in life than being stuck at a company during an economic downturn while getting a free MS and MBA 2009 will see the end of our 0% CC debt and her student loans, her starting back at school and me finishing school forever. Life is what you make of it – noone wants to take responsibility for the consequences of their actions or inactions.

No raises this year so I quess I’m taking a pay cut

Earnings in 2006 $168,000.00 – Earnings in 2007 $74,000.00 – Earnings in 2008 $62,800.00

To say the least Pay cuts are a major source of frustration . I was in the Mortgage Industry and the company I was at for four years went out of business. Took a job with another two companys that closed – Now work in Finance in a different field. I was in Outside sales and territory management now I sit in a cubicle. Benefits, and steady pay with a safe company is great. Bills based on a 120k plus a year income and a 65-70k income is not so great, While these companys can closed down in a minute and file bankruptcy employees many times cant if they want to get a good job. DId I mention I am owed money from my employer that I wont see because they filed bankruptcy. Nice!

I am a mortgage broker who has gotten tied up in the financial mess. Multiple lenders that I have worked for since I entered the business roughly six years ago have gone out of business or shut down. Prior to this line of work I was in operations management. I have been attempting to get a job, or at least an interview and am having trouble just getting my foot in the door. I am now back in school fulltime going for an MBA. I worked fulltime getting my Bachelors in business management. I thought with the MBA on my resume it would make a difference, it hasn’t. Can’t get past the gatekeepers.

Could not have said it better. After being laid off it took me two years to find a full time engineering position at a cut in pay of 30%. I work for a EU based company now. What a difference in management! No more “we only care about making the numbers work for my stock options”. This company actually has a 5 year plan they work to! They also make “real” products and make a good “real” profit.

The good personel news is my wife and I never lived beyond our means so I am actually doing rather well all things considered. My investments are only down 25% only because I stayed away from “sure things”. I expect they will also come back in a few years. Our credit ratings are over 800 so we can buy what we can afford. I never bought into the bull of the past 8 years that being overleveraged does not matter. I hope something good does come of this mess. I have some faith that it will. Even in the finance area the companies that were doing it right and were critized the past few years for not being “cutting edge” are the ones that are moving up. Gee!! Maybe some of the old ways were not so bad. Creating wealth by actually providing a product either material or financal might actually be the best way.

Engineering has been in a recession for 8 years. Offshoring is killing the technical professions. Pay cuts have become a fact of life.

I just received my annual Social Security earnings credit statement. Since 1999, my earned income over that time period has decreased by over 30%. On average, I’ve been receiving about a 4% pay cut each year. There has been a huge deflationary spiral in technical occupations for a long time.

I made more fresh out of graudate school than I make now. The good part is that my personal finances have been in “depression mode” for a long time, so I haven’t really been impacted too severly by the current situation. I’ve almost eliminated all discretionary spending, but I wasn’t spending much on trying to maintain a lavish lifestyle, anyway.

I’ve loved watching this financial house of cards come crashing down. This financial crisis is the long term effect of short term management thinking.

Finance, as a profession, has been full of itself for far too long. It doesn’t produce anything. It is a tool used to produce goods, nothing more.

Anyone can hang a shingle on his/her house and claim to be a financial expert. Now that the confidence in US financial institutions has been squandered, finance will start to experience what it’s like to compete globally. If your money can be squandered in a Ponzi scheme run by the NASDAQ chairman, what’s the difference between that and investing your money directly in foreign markets?

Hopefully, this crisis will change the policy focus from racing Third World nations to the bottom to lifting Third World nations up. Now that the credit card is maxed, the US has no choice but to start producing hard goods.

The unfortunate part is that the managers responsible for this mess have already taken off to Belize with their multi-million dollar bonuses.