Hirequest inc. Chairman and CEO Rick Hermans analyzes the US workforce state and explains where the high demand is.
America Labor market The relatively low unemployment is in a holding pattern, but the slow pace of working caused the share of long -term unemployed workers amidst economic uncertainty.
Tracks the number of individuals in the workforce considered on Labor Statistics Bureau (BLS) of Labor Department Long -term unemployedWhich has been defined as workers who have been unemployed for 27 weeks or more.
In April, the percentage of long -term unemployed workers as part of the total pool of unemployed workers increased to 23.5%in three years when the economy was rebounding between Kovid epidemic and the highest inflation in decades. It increased to 20.4% in May and has been above 20% from April 2024.
Elison Srivastava, an economist at actually a hiring lab, told Fox Business that while the economic data related to long-term unemployment could be “very noise” on the basis of month-to-month, he said that “Long-term trend is moving in one upward direction.”
The increase in job growth in May amidst economic uncertainty
Long -term unemployment is used to measure the number of workers who have been unemployed for 27 weeks or more. (Yuki Evmura / Bloomberg Getty Image / Getty Image)
“He looks at the metric, especially, with things like leaving the trimmed rates and rates, and it gives all types of paints a stable labor market photo,” he explained.
“We have a low unemployment rate, but all such tells me that if you are in the labor market right now, you are probably feeling right. But if you are trying to go to the labor market, you are probably really difficult because no one is really imposing your workers, not adding to their workforce,” Srivastava said.
Long -term unemployment reached the peak during Kovid epidemic and great recession. (Reuters / David “D” Delgado / Reuters)
The share of long -term unemployed workers among all unemployed persons reaches a high level of just 45% during 2010 and 2011. Great recession And gradually declined in the decade, in 2016 falling below 25% for the first time to 20% in 2019.
It increased again Kovid epidemicReached approximately 43% in 2021, reaching a half -range level before taking a dip below 20% in between 2022 and in February 2023.
“This is definitely a difficult situation that they are not able to leave the job when they are losing jobs or even the jobs,” Liz Bentley told Fox Business, Liz Bentley, founder and president of a consulting firm.
Long -term unemployment can set back the chances of a job seeker’s career. (Amanda through Andrade-Rodes / Washington Post through Getty Image / Getty Image)
Bentley said that workers who find themselves unemployed for a long -term face Financial strains Recalling opportunities on savings, as well as generating income or saving for retirement and other financial goals due to income scarcity.
It can also disrupt career speed. Bentley said long -term unemployment is not unique to workers in a particular stage of its career.
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“This is still happening to people in the 30s, 40s, 50s, whatever you want to call the mid-career. It kills people of all ages, and it has a significant impact.
