Long-Term Unemployment

US – The short-term unemployment rate has returned to its pre-recession average, so what ?

Because the short-term unemployment rate has returned to its pre-recession average, one important implication—if the hypothesis that the long-term unemployed are largely on the margins of the labor market is correct—is that further declines in short-term unemployment would be expected to be associated with rising inflation and stronger real wage growth. So has this trend … Continue reading →

Long-Term Unemployment in US – The case of women and families

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 →

The Beveridge Curve in US – A worsening

Real Time Economics has been tracking the progression of the Beveridge Curve, named after the economist William Henry Beveridge, that tracks the relationship between the job openings rate and the unemployment rate. With so many jobs available, more people ought to be finding their way to work. An openings rate above 3% has historically meant … Continue reading →

Canada – 272,300 long-term unemployed last year: a problem for several reasons

The number of people out of work for half a year or longer was 272,300 last year, nearly twice as many as six years earlier. Those out of work for a year or longer numbered 96,400 last year – more than double 2007 levels, according to Statistics Canada data. Longer bouts of unemployment are a … Continue reading →

Long-term unemployment in US – Geography could be one reason

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 →

Australia – Youth long-term unemployment has more than tripled since 2008 says a report

The number of young Australians who are unemployed for longer than a year – referred to as long-term unemployment – has more than tripled since 2008. The alarming new analysis of Australian Bureau of Statistics data released today by welfare group the Brotherhood of St Laurence reveals more than 50,000 people aged between 15 and … Continue reading →

How Long You’ll Be Unemployed – Look at the Unemployment Rate

A few factors do make a difference. Men are a bit more likely to become long-term unemployed than women; blacks are more likely than whites; and, most significantly, older workers are more likely than younger ones. That’s consistent with both anecdotal evidence and quantitative research suggesting that older workers have more trouble finding jobs, due … Continue reading →

Long-Term unemployed – A sharp drop-off in the number of interview requests for those whose nonemployment spell topped six months finds research

Three recent audit studies on nonemployment discrimination report results consistent with the long-term jobless having significantly lower chances of being invited to job interviews. Given the design of previous studies unfavorable treatment can be due to a marginal preference among employers for hiring applicants with shorter spells or to stronger negative beliefs about the long-term … Continue reading →

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 unemployment in US since 1950 – A chart

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 →

Long-term unemployment – Why does it matters

Evidence is mounting that the long-term unemployed aren’t merely the short-term unemployed with the addition of a little waiting time. They are in a very different situation – and an alarming one at that. Researchers in the US are setting the pace on this topic, because it is in America that a sharp and unique … 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 →

Long-Term Unemployment in US – CBO on its causes, effects, and policy options

US / Long- term unemployment spans all industries, education levels, age groups, and among blue- and white-collar workers

Today, we are still struggling with the terrible crisis of long-term unemployment left in the Great Recession’s wake, as data suggest many of the remaining unemployed individuals have been unemployed for very long periods.  While older workers and disadvantaged populations may face particular challenges, long- term unemployment affects a diverse group of workers that, in … Continue reading →

US / Percent of unemployed seeking work for longer than six months more than doubled between 2007 and 2013

Each month the Bureau of Labor Statistics (BLS) reports employment figures for the United States. These figures have served as a barometer of the country’s relative economic strength for the last seventy years and recently have highlighted unemployment’s rise throughout the Great Recession. Often overlooked, however, are figures related to the so-called “long-term” unemployed, those unemployed for longer … Continue reading →