http://www.usatoday.com/story/money/business/2014/09/07/long-term-unemployment/15147943/
One positive to be found in the August jobs report was an impressive decrease in long-term unemployment. The number of Americans without a job for at least six months decreased by 192,000. The long-term unemployed make up 31.2% of all jobless Americans, a percentage that is still historically high, but down 38% from a year ago.
Studies have shown that employers are reluctant to hire persons that have been out of work six months or longer due to the concern that these persons' skills have atrophied or are no longer suited to the new jobs being created. However, Josh Brivens, research director at the Economic Policy Institute argues that these persons are simply victims of the 2008 recession and that strengthening job growth and a tightening labor market are encouraging employers to hire back these persons.
The article also mentions that another factor that may be decreasing long-term unemployment is Congress' cut-off of extended unemployment insurance; those who lost benefits are now more likely to accept the low-paying jobs they previously rejected.
I think it will be interesting to see how the U.S. Government addresses the discrimination that long-term unemployment workers are facing from employers. I am also interested to see how the U.S. will continue its battle against long-term unemployment as it still makes up almost a third of those that are unemployed.
It's definitely nice to see that more and more employers are understanding the implications of the 2008 recession; showing sympathy towards individuals who have been unemployed for over 6 months is a plus. The thought that their skills (which have been attained over years of hard work) would dissipate in 6 months seems sightly silly to me.
ReplyDeleteThis is incredibly encouraging news for the economy as a whole. Unemployed individuals sometimes become so discouraged with the labor market that they often give up actively seeking employment. When more employers start hiring more workers, long-term unemployed individuals will see this and are less likely to become discouraged. The economy as a whole benefits as decreased unemployment tends to be a sign of recovery. I also agree with Brandi in that the notion that one’s skills can atrophy within 6 months is hard to believe.
ReplyDeleteI understand the firms hesitation of hiring these workers, but there is no way that they can get back into the workforce if companies refuse to hire them.
ReplyDeleteI find it very exciting to see these forgetten about workers get back in the workforce. It is unfair to not hire someone just because they have been unemployed for a certain amount of time.
ReplyDeleteIt's great that long-term unemployment is finally decreasing. However, it's not so great that many of these individuals only have work because they're just starting to accept lower-paying jobs that they are overqualified for. Employers shouldn't refuse to hire workers just because they've been out of work for an extended period of time unless they never really had the qualifications. It seems as though many jobs require job training and that individuals who have forgotten a few things while unemployed could be brought back up to speed quickly.
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