The Coming Crisis: White Collar Homelessness

Last month, unemployment rates surged to 7.6 percent. As the jobless population becomes older and more educated, many are ending up with no car, no job prospects, no health insurance, and - before long - no home. Will the dramatic increase of unemployment change the face of homelessness in America?

According to data from the Labor Department, more jobs have been lost in the past 12 months than any other period since the government began keeping records in 1939. Perhaps most disconcerting is that experts predict unemployment will get worse before it gets better. In 1991 and 2001, unemployment didn't hit its peak until two years after those recessions ended.

As unemployment becomes worse, community-based organizations are noticing a change in their clientele. Shelters are seeing clients who are more representative of the newly unemployed. Here's what one non-profit, Partnering for Change, reported on their blog just last week:

In recent months we've noticed a change in the needs of our program feeding homeless children. I've mentioned, there are over 11,000 elementary age children in Orange County, CA who are homeless. They are homeless for different reasons. But here's a scenario you wouldn't think would take place:

Two able body parents in their early 30's. He has a 4 year college degree in marketing, she went to a technical school in information technology. Both are smart with a willingness to work. They have 3 kids, ages 8, 5 and 2. But guess what, they are both unemployed....for 9 months now.

What would you do? When your unemployment runs out and no matter how hard you try, you can't seem to get a job? How would you feed your family? How would provide shelter?

Unfortunately this family is representative of the new face of homelessness in our community. The college educated family forced to leave their rental home and bounce around from motel to motel with no money for food to feed their children.

Another organization in St. Louis, the St. Patrick Center, has adjusted it's employment services to meet the needs of the newly unemployed white collar workforce. They have launched a networking and job training program to connect laid off workers with employment opportunities:

Officials at the St. Patrick Center said an obvious need in the region -- with roughly 7,800 professional people laid off in the past four months -- prompted the effort. Missouri's seasonally adjusted unemployment rate hit 7.3 percent in December, its highest mark in 25 years.

According to Business Week, over 200 suited professionals showed up for the first meeting.

Given that shelters and community safety nets are already grappling with shrinking budgets and increased demand, this economic outlook is downright scary.

[Photo from the Patriot-Ledger: "Father Bill's Place has seen a 25 percent increase in the numbers of homeless it serves since one year ago. Scott, 41, an unemployed laborer whose wife is also sheltered at Father Bill's walks to his bunk on the men's side of the shelter. On days that the temp dips below freezing, the homeless can stay in the shelter for the day."]