Dropouts: Discouraged Americans leave labor force

By Paul Wiseman

Associated Press

Published: Saturday, April 6 2013 5:12 p.m. MDT

Now she is looking to receive federal disability benefits for a lung condition that she said leaves her weak and unable to work a full day. The application is pending a medical review.

"I feel like I have no choice," says Marriott, 47. "It's just really sad and frightening"

During the peak of her job search, Marriott was filling out 10 applications a day. She applied for jobs she felt overqualified for, such as those at Home Depot and Petco but never heard back. Eventually, the disappointment and fatigue got to her.

"I just wanted a job," she says. "I couldn't really go on anymore looking for a job."

Young people are leaving the job market, too. The participation rate for Americans ages 20 to 24 hit a 41-year low 69.6 percent last year before bouncing back a bit. Many young people have enrolled in community colleges and universities. That's one reason a record 63 percent of adults ages 25 to 29 have spent at least some time in college, according to the Pew Research Center.

Older Americans are returning to school, too. Doug Damato, who lives in Asheville, N.C., lost his job as an installer at a utility company in February 2012. He stopped looking for work last fall, when he began taking classes in mechanical engineering at Asheville-Buncombe Technical Community College.

Next week, Damato, 40, will accept an academic award for earning top grades. But one obstacle has emerged: Under a recent change in state law, his unemployment benefits will now end July 1, six months earlier than he expected.

He's planning to work nights, if possible, to support himself once the benefits run out. Dropping out of school is "out of the question," he said, given the time he has already put into the program.

"I don't want a handout," he says. "I'm trying to better myself."

Many older Americans who lost their jobs are finding refuge in Social Security's disability program. Nearly 8.9 million Americans are receiving disability checks, up 1.3 million from when the recession ended in June 2009.

Natasha Baebler's journey out of the labor force and onto the disability rolls began when she lost her job serving disabled students and staff members at Purdue University in West Lafayette, Ind., in February 2012.

For six months, she sought jobs in her field, brandishing master's degrees in social education and counseling. No luck.

Then she just started looking for anything. Still, she had no takers.

"I chose to stop and take a step back for a while ... After you've seen that amount of rejection," she says, "you start thinking, 'What's going to make this time any different?' "

Washington reported from Pittsburgh. AP Business Writers Christopher S. Rugaber and Scott Mayerowitz contributed from Washington.

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