Long-term unemployment creates challenges for workers
HireQuest Inc. President and CEO Rick Hermanns analyzes the American workforce and reveals where demand is high.
US Lab Although unemployment rates are in a relatively low retention pattern, the slow pace of employment has caused the proportion of long-term unemployed to stagnate amidst economic uncertainty.
Labor Bureau’s Bureau of Labor Statistics (BLS) tracks the number of individuals in the workforce considered Long-term unemployedis defined as a worker who has been unemployed for more than 27 weeks.
In April, the proportion of long-term unemployed as a percentage of total pools of unemployed people rose to 23.5%. This was the highest level in three years, and the economy recovered from a symbiotic pandemic and amidst the highest inflation in decades. In May, it was immersed in 20.4%, exceeding 20% since April 2024.
In fact, Employment Lab economist Alison Srivastava told Fox Business that economic data related to long-term unemployment can be “very loud” each month, but she said “long-term trends are moving upwards.”
Amidst economic uncertainty, employment growth continued to slow in May
Long-term unemployment is used to measure the number of workers who have been unemployed for more than 27 weeks. (Getty Images / Iwamura via Getty Images / Bloomberg)
“In particular, that metric is seen in things like layoff rates and quitting, and all sorts of different types paint a picture of a stagnant labor market,” she explained.
“The unemployment rate is low, but all of this kind of thing tells you that if you’re in the labour market right now, you probably feel fine. But if you’re trying to get into the labour market, you probably have a really difficult time because no one actually lays out their workers, but they’re not adding the workforce.”
Long-term unemployment rates peaked during the symbiotic pandemic and the Great Recession. (Reuters/David “Delgado” Delgado/Reuters)
In 2010 and 2011, the proportion of long-term unemployed workers among all unemployed people reached a high of just over 45% in 2010 and 2011. Great recession And it fell slowly over a decade, first in 2016, below 25% and below 20% in 2019.
In the meantime, it suddenly increased again COVID Pandemicwhich reached nearly 43% in 2021, fell below 20% in mid-2022, and reached a post-pandemic low of 17.6% in February 2023.
Liz Bentley, founder and president of the consulting company, told Fox Business:
Long-term unemployment can retreat career prospects for job seekers. (For the Washington Post via Amanda Andrade-Rhoades / Getty Images / Getty Images)
Bentley pointed out by workers who feel they are unemployed because of their long-term face. Financial tension You may lose the opportunity to generate income or save for retirement or other financial goals due to savings due to lack of income.
It can also hinder career momentum. Bentley added that long-term unemployment is not unique to workers at certain stages of their careers.
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“This is still happening with people in their 30s, 40s, 50s who still want to call in the middle term. It hits people of all ages and it has a huge impact. In fact, we really encourage people to move quickly back to the job market if they decide to lay off or make changes,” Bentley said.