Gregory Jordan , 19,  left, is congratulated by a government worker as he arrives to finalise his enlistment in Hanover, Pennsylvania.
Gregory Jordan , 19, left, is congratulated by a government worker as he arrives to finalise his enlistment in Hanover, Pennsylvania.

Jobless turn to the armed forces



HANOVER, PENNSYLVANIA // When Gregory Jordan was laid off last month from his job as a dishwasher at a local restaurant, the 19-year-old recent high school graduate did what an increasing number of US residents are doing in these tough economic times: he joined the military. With unemployment rates soaring and jobs becoming scarce, more Americans have been lured by Uncle Sam's promise of health benefits, tuition for school and job training. Four of the five branches of the US military - the army, air force, navy and marines - have exceeded recruitment targets for each of the first five months of this fiscal year and recruiters are reporting a surge in interest among young people like Mr Jordan, who decided to join the air force because he could not afford college.

"The economy is going down ? but the air force still has the ability to pay its troops very well," said Mr Jordan, standing in front of the local Armed Services Career Center, a recruiting station housed in a strip mall in this rural region of southern Pennsylvania. "I am very excited about this." Mr Jordan came to the recruiting station to finalise his enlistment papers. He emerged about a half-hour later, proudly sporting an air force baseball cap. He will now face a battery of physical tests and take the military entrance exam before being shipped off to boot camp.

"There's a whole world of opportunities now," said Mr Jordan, a native of the nearby town of Gettysburg, Pennsylvania. "There's basically no limit to it, and it just feels amazing." An increase in the country's unemployment rate has historically led to a spike in military enlistments, Pentagon officials said. From the beginning of the current fiscal year in October through February, the army, the largest branch of the military, enlisted 44,262 new active and reserve soldiers, nearly eight per cent more than its target. During that same period, the unemployment rate rose to 8.1 per cent from 6.6 per cent. "We've had a good year," said Douglas Smith, a spokesman for the US Army Recruiting Command in Fort Knox, Kentucky, who noted that the army has not enjoyed such success for at least six years and perhaps longer, depending on how long the current streak lasts.

While the economy is the largest contributor to the recruitment boom, Mr Smith said other factors such as the planned withdrawal of US troops from Iraq and an improvement in military benefits have attracted many. A new "GI Bill", which enhances the military's educational perks, will take effect in August. The defence department has rarely failed to meet its recruiting targets; it has only happened once since 1999. But with wars in Iraq and Afghanistan, and steady news coverage of the casualties, it has not been easy for recruiters to meet their quotas. Some standards have been lowered to help them beef up the ranks.

The army, for example, normally requires 90 per cent of its recruits to have a high school diploma. But since 2005, around the time when conditions in Iraq deteriorated, that standard has not been met. In 2007, only 79 per cent of the new recruits graduated from high school. In 2006, the army also increased its maximum age to 42 from 35 and eased other restrictions that would have previously disqualified some from enlisting, such as low scores on the entrance exam or having a criminal record.

Now, however, with the new surge of interest, some recruiters say they are turning candidates away because they simply cannot keep up with demand. Only one-quarter of US youth are qualified to serve in the military, according to Curtis Gilroy, the director of accession policy at the defence department, who testified before Congress in March. At the recruiting station in Hanover, which serves all four branches of the military, at least six young people showed up at the station in a two-hour span last week. One of them was Leah Knowlton, 17, of the nearby town of Fairfield, who plans to enlist in the army after she graduates high school in the spring. Because she is a minor, Leah needed her parents' approval to begin the recruitment process.

"There's a few benefits and bonuses and stuff. My parents, they agree with it," she said, adding that she hoped to join the military police. "It's pretty much like a guaranteed job." It is not hard to see how such job security would appeal to young people in this rural, blue-collar region of Pennsylvania. The borough of Hanover is best known for being the "snack food capital of the world" because it is home to several national food brands, including Utz, the maker of potato chips, or crisps. Many of the jobs that await high school graduates here are in factories; for some the military is a better option. The unemployment rate here lurched to 7.2 per cent in January from 5.8 per cent in December. In the nearby town of Littlestown, a cabinetmaker recently shut down, leaving 400 people without jobs.

"People are coming in looking for a fresh start on a career if they are unemployed and unable to find work," said Sgt Gregory Koskey, who heads the army's recruiting operation in Hanover. He said fewer recruits are expressing concerns about being sent off to war. "They just kind of realise that it's probably going to happen. They have grasped the reality as a nation that this is what we're in right now."

People here know that a military job can be a dangerous way to make a living. A local man, Michael Dinterman, from Littlestown, died of a gunshot wound in Afghanistan last year. He had been there one month and was about to turn 19. Dinterman enlisted at the Hanover recruiting station a little more than a year ago, just after graduating high school. "We are well aware of the dangers of enlistment and we make that well known to our recruits when they come into the station," said Sgt Koskey, who remembered when Dinterman came into the office. "When it hits that close to home, it opens your eyes."

Still, such risks did not deter Mike Conover, an 18-year-old high school senior, who is also from Littlestown. He came to the recruiting station to join the navy on his daughter's first birthday. "I did think over this a few times - I thought that maybe I should not do this because of [my daughter]," said Mr Conover, who was also considering jobs in construction and at a local store. "I thought this was the best decision for the future."

sstanek@thenational.ae

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Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

Traits of Chinese zodiac animals

Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent   

How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

Rating: 2/5

UPI facts

More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions

Paris Can Wait
Dir: Eleanor Coppola
Starring: Alec Baldwin, Diane Lane, Arnaud Viard
Two stars

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
RESULTS

5pm: Maiden (PA) Dh 80,000 (Turf) 1,200m
Winner: AF Majalis, Tadhg O’Shea (jockey), Ernst Oertel (trainer).

5.30pm: Maiden (PA) Dh 80,000 (T) 1,400m
Winner: Sawt Assalam, Szczepan Mazur, Ibrahim Al Hadhrami.

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7pm: Handicap (PA) Dh 80,000 (T) 1,600m
Winner: RB Dixie Honor, Antonio Fresu, Helal Al Alawi.

7.30pm: Rated Conditions (TB) Dh 100,000 (T) 1,600m
Winner: Boerhan, Ryan Curatolo, Nicholas Bachalard.

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The specs
Engine: 2.7-litre 4-cylinder Turbomax
Power: 310hp
Torque: 583Nm
Transmission: 8-speed automatic
Price: From Dh192,500
On sale: Now
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