Perez said the plight of the long-term unemployed – or those without work for at least 27 weeks — is the one issue that has caused him to lose sleep. He has met with many such workers since becoming Labor Secretary about a year ago.
There is a reason long-term unemployment would be capable of consuming Perez’ thoughts. This is the first time long-term unemployment has lasted so far into a recovery. In July, there were 3.2 million long-term unemployed, down by 1.1 million in July 2013. They accounted for about one-third of the total number of unemployed. Based on the recovery patterns from other recessions, the number of long-term unemployed should be substantially lower by now.
The Labor Department has developed a multi-pronged strategy aimed at lowering long-term unemployment, including funding that specifically targets this population. For example, this fall the department is scheduled to award $150 million in Ready to Work Partnership grants for programs that provide components such as work-based training and job placement assistance, so that the long-term unemployed may fill middle- and high-skill jobs. The grant seeks to create a pipeline of domestic employees for jobs in which employers currently use foreign workers on H-1B visas. Others initiatives aimed at the long-term unemployed include the Labor Secretary joining President Barack Obama in using the “bully pulpit” to persuade companies to abandon employment screening policies, such as credit checks, that effectively eliminate the long-term unemployed, who are more apt to be struggling with their finances.
“For me, it is both a national economic imperative to get the long-term unemployed back on their feet,” Perez said. “It is a moral imperative. As a nation, we don’t kick people to the curb when they’ve had bad luck, and that is what they’ve had.”
Chosen excerpts by Job Market Monitor. Read the whole story at Is long-term unemployment here to stay? (with photo gallery) | cleveland.com.
US – Long-Term Unemployment is elevated across all education, age, occupation, industry, gender, and racial and ethnic groups
Long-term unemployment is elevated for workers at every education level. The table below provides additional breakdowns of long-term unemployment by age, gender, race/ethnicity, occupation, and industry. For each category, the table shows the long-term unemployment rate in 2007, the long-term unemployment rate in 2013, and ratio of the two. It demonstrates that while there is … Continue reading
Long-Term Unemployed in US – Only 11 percent have returned to steady, full-time employment a year later
In “Are the Long-Term Unemployed on the Margins of the Labor Market?” Alan B. Krueger, Judd Cramer, and David Cho of Princeton University find that even after finding another job, reemployment does not fully reset the clock for the long-term unemployed, who are frequently jobless again soon after they gain reemployment: only 11 percent … Continue reading
This FRED graph divides unemployed (civilian) workers according to the duration of their unemployment spell. The number of those unemployed for 27 weeks or more is still very high, while the other categories have recovered to normal levels. This level of persistently elevated unemployment is different from that during previous recessions, and there may even … Continue reading
Democrats generally point to the anemic recovery, in which weak demand for goods and services results in less hiring. The cyclical nature of unemployment, they say, can be addressed with more government stimulus. Republicans tend to focus more on structural problems, in which the education and experience levels of the unemployed don’t match what employers … Continue reading
Misconception: The problem isn’t really that bad At the time of writing, there were 3.2 million long-term unemployed in the U.S. accounting for 32.9 percent of the labor force. We mentioned earlier that this was historically high — even higher than peaks recorded following earlier economic crises — but the graph above should illustrate how … Continue reading
in the past six months, unemployment has fallen much faster than expected, from 6.7 to 6.1 percent. And as you can see above, 88 percent of that has been due to declining long-term unemployment. Chosen excerpts by Job Market Monitor. Read the whole story at The long-term unemployed might finally be getting jobs – The Washington Post. … Continue reading
Long-term unemployment is a continuing crisis for both men and women, and their families. However, women’s typically lower earnings when they are employed and their far greater likelihood of being single parents makes them and their children more economically vulnerable when both income from work and modest unemployment insurance benefits are lost. For that reason, … Continue reading
New research that examined joblessness in the early 2000s provides evidence that some of the problem might also be geography. A paper written by government and academic experts suggests that living near where the jobs are significantly reduces the amount of time it takes unemployed jobseekers to find work. The research found that to be especially true … Continue reading