Darryl R. Matthews Sr. has left the ranks of the underemployed to recently land a full-time job that meets his desired salary and professional requirements. As of October 2011, Matthews became executive director of the National Medical Association. He had been out of work after losing his job as executive director of the National Association of Black Accountants in March 2007. At age 58, Matthews knows how tough it is to find employment. Although the unemployment rate among workers 55 and older is relatively low at 6.4%, it takes those 45 years or older longer to re-enter the market. While between jobs, Matthews relied mainly on short-term, low-paying assignments. For the first time in his life he periodically collected unemployment. It was a blow to his wallet, ego, and self-esteem. "I grew up in a household where you were expected to work, so that time off was depressing,†says Matthews. Now he feels productive again and is elated to be "back in the game.†The American job market has improved modestly in recent months. Economists looking deeper into the numbers found real reason for optimism in the slow economic recovery. But the huge question is how long can any gains be maintained? Headwinds such as the still high unemployment rate, limp housing market, and lack of consumer confidence could limit the economy from picking up speed. Still, there appears to be a potential glimmer of light ahead. The U.S. economy is expected to grow about 3% in 2012, up from a projected 2% for 2011, according to Brett Hammond, senior economist at TIAA-CREF, the New York-based financial services company and leading provider of retirement benefits nationwide. But Hammond and others warn that what happens to the U.S. economic picture–including the risk of another recession–is tied to what happens in places such as Greece, Italy, Spain, and Portugal. The upcoming U.S. presidential election will also play a critical role in driving the nation's economic direction in 2012 and the development of policies coming out of Washington. As bickering lawmakers struggle to bring the nation back to health, there are things that you can do to alleviate whatever situation ails you–whether you're trying to buy a home or save one from foreclosure, find a job or shift career gears, or increase your wealth through savings and investments to bring about your own personal financial recovery. (Continued on next page) Housing Lakimlyn Ford is one of the fortunate house hunters who took advantage of a buyer's market. She purchased a home in Columbus, Georgia, in late November for $118,000 by working with NeighborWorks America, a community development and affordable housing organization. The 33-year-old accountant bought a tri-level home with four bedrooms and two and a half baths. A divorced mother of a 14-year-old son and 11-year-old daughter, Ford acquired the home to show her children that they, too, could someday achieve the American dream and own a home. "I got a pretty big house for the money I paid,†she says. The seller paid the closing costs and offered a year's warranty on the entire home and its contents, including the appliances, air conditioning unit, hot water heater, and new roof. "I was truly blessed,†says Ford. The nation's overall homeownership rate was 66.3% during the third quarter of 2011, according to the latest U.S. Census Bureau report. The rate was 74% for whites, 46% for blacks, 48% for Hispanics, and 56% for all other races including Asians. Falling home prices over the past four years have benefited new homeowners like Ford, but at the same time they have troubled homeowners who faced lower-valued homes and underwater mortgages (a loan that exceeds what the home is worth). Gradual improvement is expected in housing in 2012, with slight increases in the sales of new and existing homes and a bit of a boost in median prices, according to projections at the 2011 Realtors Conference & Expo in Anaheim, California. Lawrence Yun, chief economist of the National Association of Realtors, stated in a press release that sales of existing homes are expected to rise about 5% in 2012 to a projected $5.22 million, from a projected $4.97 million in 2011. He sees mortgage interest rates gradually rising from recent record lows to reach 4.5% by mid 2012. For home values, he expects modest appreciation this year. Deborah Boatright, northeast regional director at NeighborWorks America, suggests that potential first-time homebuyers consult a certified homebuying adviser before they pursue buying a home. (Continued on next page) Advice for homebuyers or struggling homeowners: Make sure you can comfortably afford a home. Your monthly mortgage payment typically shouldn't exceed 30% of your monthly income. Don't forget, the mortgage payment will include taxes and insurance. Be honest with yourself and only take the plunge if you're stable with managing your money. You don't want to get in a cycle of late payments that could wreck your monthly budget or cause you to default on the loan and lose your home to foreclosure. Seek out down payment assistance. With the passage of the Housing and Economic Recovery Act of 2008 many FHA down payment program rules were changed, making it tougher to qualify for down payment assistance, but organizations such as NeighborWorks America, which has more than 100 homeownership centers nationally, can still help by offering grants. According to NeighborWorks America, every state has a down payment assistance program. Manage and monitor your credit. Credit is still tight, but it's available to homebuyers who are prepared. Homebuyers need to have good credit and ample savings, which can provide them with the 20% down payment they need to become homeowners. Make sure you pay your bills on time and pay more than the minimum due. Work diligently to pay off any credit card balances. (For information on credit counseling, see "Your Get-Out-Of Debt Checklist,†money, this issue.) Work with a foreclosure mitigation specialist. If you are facing foreclosure, a HUD-certified National Foreclosure Mitigation Counseling agency can help negotiate with a lender or servicer on your behalf–for free–to restructure your loan so your payment is more manageable. A counselor can also assess your arrearage and explore the best options. According to NeighborWorks America, a homeowner in foreclosure who sees a foreclosure prevention counselor is twice as likely to get a loan modification as a homeowner who does not. Employment The nation added 120,000 jobs in November 2011, the 14th consecutive month of job gains. African American unemployment edged down from 16% in November 2010 to 15.5% in November 2011, according to the U.S. Department of Labor. That figure was 7.6% for whites; the nation's overall unemployment rate was 8.6% for the same month. Moreover, black teen joblessness fell from 46.3% in November 2010 to 39.6% in November 2011. (Continued on next page) The jobless rate could fall modestly next year by more than 0.5 of a percentage point but less than 1.5 percentage points, says Gary Burtless, a labor economist at the Brookings Institution, a Washington, D.C., think tank. "The U.S. economy is growing too slowly to expect a more rapid drop in the unemployment rate.†Burtless says spending is down because of the loss of wage income among the unemployed, and because the employed fear that they may soon become jobless. Suppressed spending slows economic growth, since there's less demand for goods and services. Blue- and white-collar workers alike are beleaguered by unemployment or underemployment. In fact, black enterprise partnered with Walmart to address such issues at its 20/20 Vision Forum in Los Angeles in October. Among the recommendations was that African American professionals can confront these challenges by repositioning and reinventing themselves. Tips for job seekers to consider: Volunteer your services. You may score a new job by volunteering your time and expertise to a worthy cause. For instance, if you are a marketing expert, offer to help out the local Boys and Girls Club with its campaign or promotions for a major fundraiser. Doing this will help to expand your network, and you may meet influencers who can advocate on your behalf. Check out the federal government. The nation's largest employer is now hiring. About 40% of the jobs are in the mid-Atlantic and Southeast, but there are jobs in other parts of the U.S. and even beyond U.S. borders. Start at www.opm.gov, the government's employment website. For pay grades for white-collar jobs, look for the "GS†designation. The "FWS†designation signifies blue-collar or hourly wage jobs. Search for specific agency lists at www.usa.gov/directory/federal/index.shtml. Increase your exposure via social media. You have to do more than post a résumé online at sites such as Monster.com. That's the old way of getting a job. Employers are now using social media to spot new hires. Use your networks–Facebook, Twitter, and LinkedIn–to build your brand. Blog about industry topics. Tweet tidbits, news, and other information that's relevant to your field and helpful to your followers. Use LinkedIn to search for groups and find forums where you can showcase what you know. Re-educate yourself. Job seekers, especially midcareer professionals, need to retrain themselves, which may require going back to school to acquire new credentials. What certifications would truly be a career booster? No matter what field you're interested in, chances are there's a certification for it. (Continued on next page) Reposition yourself. Explore growth industries that offer employment opportunities, such as healthcare. Also, adopt a global perspective. Search for opportunities outside the U.S. by joining a global leadership or international professional organization. Attend an international summit, serve on a panel, or conduct a seminar related to your field overseas. Consumer Savings and Investments The bursting of the housing market bubble in 2006 and the recession that followed from late 2007 to mid-2009 took a far greater toll on the wealth of minorities than on the wealth of whites, according to the Pew Research Center. A recent study showed that from 2005 to 2009, inflation-adjusted median wealth fell by 53% among black households, compared with a drop of just 16% among white households. As a result of these declines, the typical black household had just $5,677 in wealth (assets minus debts) in 2009; the typical white household had $113,149. Moreover, about 35% of black households had zero or negative net worth in 2009, compared with 15% of white households. In 2005, the comparable shares had been 29% for blacks and 11% for whites. In spite of short-term losses, you must think long term when it comes to saving and investing for your family's future, experts say. "The market is more likely to see double-digit returns over the next decade or so rather than single-digit growth or especially a negative return,†says Mellody Hobson, president of Ariel Investments L.L.C. (No. 6 on the be asset managers list with $5.47 billion in assets under management–see "You Can't Predict the Future,†Money, this issue). Joshua Shapiro, chief economist at MFR Inc. in New York, says that it's critical for families to continue to pay down their debts and get their balance sheets in order. Much progress has been made on that front and is likely to continue for 2012. Shapiro believes a lot of that behavior is going to be shaped by the strength of the U.S. labor market recovery. Also a concern is how fast Europe can respond to fixing problems with its debt crisis and avoid falling into a major recession. He says a key factor will be how Germany, France, and the European Central Bank team up to repair Europe's problems in the months to come. Suggestions for increasing savings and investing in financial markets: Track your monthly spending and net income, and transfer any surplus into savings at the month's end. Focus on shoring up your emergency funds in this environment as well as creating reserves for investment opportunities. Take a contrarian view and invest for the long term. Look for value in U.S. stocks, particularly those with valuations that offer a bargain investment, given the volatile market. Consider diversifying your portfolio beyond U.S. stocks and stocks from emerging markets. Also weigh other asset classes such as commercial real estate, corporate bonds, and inflation-linked bonds. Invest in stocks that make products people need. Also consider companies that pay solid dividends regardless of economic conditions, such as consumer staples and consumer durables.