Friday, April 5, 2013

Longterm Unemployed are becoming helpless

http://finance.fortune.cnn.com/2013/04/05/march-jobs-report-fed/

Last month, the US economy only added 88,000 jobs, compared to 268,000 jobs in February 2013 and the average of 187,000 a month since september of 2012. For those who have only been out of work a short time, the economy is normalizing again and finding a job isn't as difficult as it has been recently. However, the long term unemployed, or those out of work for six months or longer, are in a tough situation. Employers are choosing to hire the 'freshly' unemployed workers over the long unemployed because employers assume "the longer people are out of work, the more they forget, and the more out-of-date their skills become." This may or may not be true depending on the situation, but unfortunately it is the view that potential employers have. The long term unemployed make up about 40% of the unemployed right now and people need to be weary about how the read the unemployment rate. Yes, the overall rate may be dropping, but it is partly to the long term unemployed giving up looking for work, not because they actually found jobs. The Fed has passed policies recently that keep interest rates low, increase home sales, and create jobs, but unless something changes, employers are going to look at the long term unemployed in the same light, which does not bode well for them.

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