Skip to main content

Long-term unemployment

Date posted:

Economists are becoming increasingly worried about what they call long-term unemployment. N.C. State University economist Mike Walden defines the term and explains what worries it creates.

“Well , we define long term unemployment as someone who is unemployed for more than 26 weeks. And if we use that definition, we currently see that long-term unemployment in the country is at its highest level in 50 years.  Forty percent of people who are now unemployed are in that category of being unemployed for a long term.

“Now why should we worry about this? Well, several studies show that the longer that a person is unemployed, the harder it is for that person to get a job.  So, one reason we worry about long-term unemployment is whether those folks become unemployable after a certain period of time.

“It may also indicate something about skill preparation — that is to say, people who have been unemployed for a long period of time may be in that situation because they don’t have the right skills for the jobs that are available. So, this could come back to a training and educational issue.

“But clearly economists are not only now worried about unemployment, but we’re increasingly worried about folks who’ve been unemployed for this long period of time.”

Share this story:
Share on FacebookTweet about this on TwitterShare on Google+Pin on PinterestShare on LinkedIn

Tags: ,