Long-term unemployment: consequences and solutions

Article Highlights

  • 39.3% of all unemployed have been unemployed for 6 months or longer

    Tweet This

  • We need to think outside the box for policy solutions to long-term unemployment

    Tweet This

  • long-term unemployment has large impacts on finances and wellbeing

    Tweet This

 

Chairman Brady, Vice Chair Klobuchar, and Members of the Committee, thank you for inviting me to appear today to discuss the problem of long-term unemployment.   In the testimony that follows, I will discuss the current status of the long-term unemployment crisis, review recent attempts to explain it, and then turn to possible policy options.

I.    Long-term unemployment today

In December 2007, at the start of the Great Recession, the number of the long-term unemployed stood at 1.3 million, or 17.3 percent of all unemployed workers. Over the course of the recession the U.S. experienced an increase in the number of individuals unemployed for 27 weeks or more, a trend which continued after the recession’s close in June 2009. The number of the long-term unemployed peaked in April 2010 at 6.7 million, making up 43.9 percent of all unemployed workers. Currently, there are 4.6 million workers who are considered long-term unemployed, which comprises 39.3 percent of all unemployed workers.

Click here to read the full testimony as a PDF.

 

Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Kevin A.
Hassett

What's new on AEI

AEI Election Watch 2014: What will happen and why it matters
image A nation divided by marriage
image Teaching reform
image Socialist party pushing $20 minimum wage defends $13-an-hour job listing
AEI on Facebook
Events Calendar
  • 27
    MON
  • 28
    TUE
  • 29
    WED
  • 30
    THU
  • 31
    FRI
Monday, October 27, 2014 | 10:00 a.m. – 11:30 a.m.
State income taxes and the Supreme Court: Maryland Comptroller v. Wynne

Please join AEI for a panel discussion exploring these and other questions about this crucial case.

Tuesday, October 28, 2014 | 9:30 a.m. – 12:15 p.m.
For richer, for poorer: How family structures economic success in America

Join Lerman, Wilcox, and a group of distinguished scholars and commentators for the release of Lerman and Wilcox’s report, which examines the relationships among and policy implications of marriage, family structure, and economic success in America.

Tuesday, October 28, 2014 | 5:30 p.m. – 7:00 p.m.
The 7 deadly virtues: 18 conservative writers on why the virtuous life is funny as hell

Please join AEI for a book forum moderated by Last and featuring five of these leading conservative voices. By the time the forum is over, attendees may be on their way to discovering an entirely different — and better — moral universe.

Thursday, October 30, 2014 | 2:00 p.m. – 3:00 p.m.
A nuclear deal with Iran? Weighing the possibilities

Join us, as experts discuss their predictions for whether the United States will strike a nuclear deal with Iran ahead of the November 24 deadline, and the repercussions of the possible outcomes.

Thursday, October 30, 2014 | 5:00 p.m. – 6:15 p.m.
The forgotten depression — 1921: The crash that cured itself

Please join Author James Grant and AEI senior economists for a discussion about Grant's book, "The Forgotten Depression: 1921: The Crash That Cured Itself" (Simon & Schuster, 2014).

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled today.
No events scheduled this day.