Long-term unemployment in America: the new nasty twist

Scary piece by Clive Crook in the FT noting how the long-term unemployed share of total unemployment is unusually high by historical standards--almost 5m out for 6 months or longer.  They account for something like half the unemployed right now, also something not seen in decades.

Americans have always lost their jobs more frequently than their European counterparts, but we've also tended to find new ones faster while the Euro govs tend to offer better retraining and cushier benefits.

It would seem we enter a new period, hence the need for some new rules on how to handle it.

Comments

[rblx]

Between outsourcing jobs and jobs replaced by automation, fewer people will be needed to produce what we need to produce here. Internet sales means fewer people will be needed to sell those goods.

I don't see adequate US employment being feasible in the long run. An aging population with a push to raise the retirement age will leave many citizens under employed due to age discrimination. While a degree statistically is considered good for employment, if one becomes unemployed in their 60's they may be seen as "over qualified" for the work that is available.

Eventually, some new equilibrium will be obtained but until then it's going to be a very bumpy ride – but I hope to be proven wrong.

[Ted O'Connor]

There are college grads from June 2009 that still do not have jobs. I have a friend in the "Incentives" business. His company provides the prizes, trips, awards, etc. for sales forces. He has CEO's telling him that they don't need any incentives right now to keep employees working hard. Employees are scared to death that they will lose their jobs...and they know that it is almost impossible right now to find another.

Teachers are being laid off in my community. People are angry about that. Local Police Departments and Fire Departments, although not laying off, are not hiring. These are "core" jobs. Necessary jobs. I don't hear any solutions being proposed.