Statement
Today’s employment report shows that labor market conditions remain extremely harsh for job-seekers, generating a record level of long-term unemployment. One third of the unemployed (33.8 percent) have been looking for work for 27 weeks or more — the highest percentage ever recorded in data going back to 1948 and well above the peak reached in the severe 1981-82 recession (see Figure 1).
The report also shows that the deterioration in labor market conditions has slowed considerably from earlier this year, suggesting an economic recovery may be in sight. But that news must be tempered by the ongoing plight of the long-term unemployed.
Although the economic recovery legislation that the Administration and Congress enacted earlier this year contained significant unemployment insurance benefits for people who continue to have trouble finding a job, about 1.5 million people will run out of benefits by the end of this year, according to the National Employment Law Project. Moreover, the temporary unemployment insurance benefits in the recovery law are scheduled to expire at the end of this year. Even if an economic recovery is underway by then, policymakers should not conclude that the long-term unemployed no longer need assistance.
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