Charles R. Mahon had a clear vision of his working life. He would make a good salary -- enough to put three kids through college -- win bonuses and promotions, and have a long, successful career at Constellation Energy Group Inc.
But Mahon, an engineering administrator at Constellation's Calvert Cliffs Nuclear Power Plant, was laid off on New Year's Eve from his $90,000-a-year job after more than two decades.
Five months later, he is still looking for work, has nearly spent his severance and is close to dipping into savings. "The crunch is on," said Mahon, who turns 50 this month.
Dressed in a shirt and tie and sitting ramrod straight, he says, "It is increasing pressure. Emotionally, it is extremely difficult. Fighting off dejection and rejection is a major effort."
Mahon, who lives in Arnold with his wife and children, is among 9 million Americans who are unemployed in one of the worst job markets in 20 years.
"It is really bad," said Charles W. McMillion, chief economist at MBG Information Services, a Washington-based business information analysis and forecasting firm. "It is from lawyers and Ph.D.s to ditch diggers. Right now, it is really, really tough at all levels."
Many people struggling to find jobs are professionals, such as Mahon, who have advanced degrees but few prospects.
"It used to be that if you ... were highly educated and you came out of a middle management-type background, you had some extra protection," said John A. Challenger, chief executive of Challenger, Gray & Christmas Inc., a Chicago-based outplacement firm. "That doesn't seem to hold anymore. Companies are just as quick to cut out jobs at executive levels."
Companies are still slashing workers from their payrolls. The economy has lost 2.5 million jobs since employment peaked in February 2001, as companies have relied on productivity gains and temporary workers, and have shipped jobs overseas.
Combining those who have given up looking for work and those who need full-time employment but are forced to work part time, one out of eight people in the work force is unemployed or underemployed.
Beyond the 6.1 percent who are unemployed -- the highest rate since July 1994 -- 4.7 million others are out of work and want jobs, but were not counted in the Labor Department's most recent survey, which was released Friday. They either didn't actively look for a job in the four weeks before the survey or were "discouraged" and stopped looking for work altogether.
Adding those workers boosts the unemployment rate to 9.4 percent.
Another group of workers consists of the underemployed who have taken part-time jobs. They totaled 4.6 million last month, bringing to 12.5 percent the number of people who lack full-time work.
Even more troubling, it is taking people longer to find work. In April, the average duration of unemployment jumped to 19.2 weeks, up almost a week since the year began.
Better times
Three years ago, few worried about whether they could find a jobs. Telecommunications companies, car dealerships, restaurants, homebuilders and manufacturers couldn't find enough workers as the economy boomed.
Companies offered fat salaries, bonuses, stock options and incentives to bring workers aboard as unemployment sank to 3.8 percent in April 2000, its lowest level in three decades. Many thought the good times would last forever.
Lisa Lundberg, 44, was more skeptical than most. She worked at Columbia-based Magellan Health Services Inc., the nation's largest mental health care company, which began having financial problems shortly after she joined it in 1999.
As director of member communication, Lundberg thrived, making $70,000 to $80,000 a year and overseeing a $3 million budget with seven employees. Lundberg didn't worry about losing her job if things got worse at Magellan.
"I felt very confident that I would be able to find another job if the job at Magellan didn't work out," she said. "My skills are transferable."
In October, as the company slashed its staff, Lundberg was let go. Since then, she has sent out 125 resumes to companies and organizations but has had just eight interviews. "This whole job search takes such a toll on your self-confidence," Lundberg said. "It can be a life-altering situation."
To save money, Lundberg has stopped eating out and going to the movies. When she shops for groceries, she buys the essentials. She receives $400 in unemployment benefits every two weeks, but that doesn't cover her monthly mortgage of $1,200.
Lundberg has used up her savings and has to spend money she has tucked away for retirement. "My finances are tapped out," Lundberg said. "It's really scary. It is the only money I have for when I get older."
Although Lundberg bought time several weeks ago by filing for an extension for unemployment benefits, she nervously counts the days until the checks stop coming in about 12 weeks.
