More than a quarter of unemployed Americans have been out of work for more than a year, according to the latest jobs report.
According to the data, nearly 2.7 million people were unemployed for more than 52 weeks in April, more than double the number in February and accounting for about 29 percent of the total 9.2 million unemployed last month. These figures are not seasonally adjusted.
But these statistics may still be an underestimate. Certain workers, such as those who leave the labor market entirely due to epidemic health risks or childcare responsibilities, are not considered unemployed because they are not actively seeking work.
According to economists, the long-term unemployed are most represented in the most affected industries, such as leisure and hospitality.
Compared to pre-epidemic levels, there were nearly 3 million fewer jobs in this industry, accounting for one-third of the total 8.2 million unemployed. The number of jobs added to the industry, including restaurants, bars and hotels, stood at 331,000 last month.
Economists believe it takes at least six months without a job to be included in long-term unemployment.
According to the Bureau of Labor Statistics, 4.2 million people were long-term unemployed in April, accounting for 43 percent of all unemployed workers. That’s close to the all-time high of 45.5% in April 2010 after the Great Recession.
From a financial perspective, this is especially dangerous for families. Finding a new job becomes more difficult, long-term income may be lower, and the chances of being unemployed again increase.
The federal government, for its part, is providing assistance by extending and raising weekly unemployment benefits to provide labor income. President Biden (Joe Biden) signed a $1.9 trillion rescue package last month that extends assistance through Labor Day and provides $300 per week in state benefits.
The number of people unemployed for at least a year is still well below the highest level since the Great Recession.
According to the Bureau of Labor Statistics, 4.6 million people were unemployed for at least 52 weeks in April 2010. That number fell below the 4 million mark only 20 months later.
Considering the pace of vaccinations and the pace at which businesses are returning to full operations, long-term unemployment may not last that long.
Labor Secretary Marty Walsh said, “The labor force participation rate in April was at its highest since last August, and the number of people expressing hesitation about returning to work because of the outbreak was at its lowest point since the outbreak.” “But these numbers also show there is still a long, steep road ahead to rebound.”
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