The harsh reality of unemployment

Long-term unemployment and labor market disconnects discourage workers.

1. U.S. Bureau of Labor Statistics, Number Unemployed for 27 Weeks & over. 2. U.S. Bureau of Labor Statistics, Discouraged workers, seasonally adjusted.

• The number of persons who are longer-term unemployed for 26 weeks or more has risen over the last two years (line graph, left axis).

  
  

• What appears to be a “step-down” in the last two months is likely reflected in the rise in the number of “discouraged workers” – people who are not actively looking for work because they believe there are no jobs available or are not qualified for open positions (bar graph, right axis).

  
  

• The reported Jan-25 discouraged workers is the highest since Jun-21 (COVID).

  
  

• Labor market disconnects, such as industry-wide layoffs in Tech, less than robust automated applicant screening tools, and improper characterization of the unemployed as poor performers, are likely factors.