Long-term unemployment is close to a Great Recession record
- The January jobs report shows high rates of long-term unemployment, which is a period of joblessness lasting at least six months.
- This is a financially risky period in which household income may drop, finding a job is harder and future earnings potential typically suffers, according to economists.
- Almost 40% of jobless workers are long-term unemployed, the Bureau of Labor Statistics reported Friday, nearing the record 46% set following the Great Recession
Long-term unemployment is edging toward a historical peak, almost a year into the pandemic-fueled downturn.
Workers are deemed to be “long-term unemployed” when their jobless spell is longer than six months.
It’s an especially dangerous period of unemployment, according to labor economists.