Friday, August 15, 2014

3 Common Misconceptions About Long-Term Unemployment

Defined by the Bureau of Labor Statistics as labor force participants who have been out of work for twenty-seven weeks (six months) or more, long-term unemployment is both a symptom and a sickness. As a symptom, it indicates economic anemia caused by weak demand and structural unemployment, which usually comes in the wake of an economic shock like the financial crisis. As a sickness, it can ruin the career or lives of those affected, destroying not just savings but also reducing a person’s likelihood of being hired and reducing earnings potential for many years.
Because of this, excessive long-term unemployment is one of those outrageous economic problems that demands action. The longer the long-term unemployment rate remains high, the more damage prolonged joblessness inflicts on individuals, families, and the economy at large. And if you haven’t caught the memo yet, the United States is sick. In July 2014, 3.2 million Americans accounting for 32.9 percent of the total unemployed had been looking for work without success for more than six months. Granted, this is down dramatically from post-crisis highs in 2010, but it is still well above even the highest peaks previously recorded.

1 comment:

Unknown said...

It’s a pity but today most people are unemployed. People who wanted better job have nothing today. The wages are low and people have to take poor credit loans. These loans can’t save the economy of the country but it help people to buy necessary things. The government has to pay attention on problem with jobs because people are really poor.