Long-Term Unemployment at Highest Recorded Rate

By
Wednesday, June 02, 2010 at 10:28 am

This morning, another round of jobless benefits expired, with Congress away and hope of the approval of a new tier diminishing. And Sara Murray of The Wall Street Journal highlights one of the worst facets of the unemployment crisis: Nearly half of the unemployed — 45.9 percent, or 7 million people — have been out of work for more than six months, the highest proportion since the Labor Department started tracking the statistic in 1948.

For every day a person is out of work, not only does he and his family suffer from the effects of lost income, but the chances of his finding work diminish. And, unusually in this recession, long-term employment has not just hit retirement-age or very young workers, but every demographic class.

The number of long-term unemployed persons poses a serious policy problem now, though one Congress seems to have answered: It will not extend unemployment benefits any longer than 99 weeks in some states, but will likely continue funding extended unemployment benefits as stimulus. But the issue will also pose a serious policy problem in the future: What will Congress do if, five years from now, with the recovery well underway, there remain millions of people who simply cannot find work? Job retraining programs and hiring incentives present one partial solution, but if Congress continues to tighten the nation’s fiscal belt, such expensive programs might not be politically feasible.

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119 Comments

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[...] Long-Term Unemployment at Highest Recorded Rate “This morning, another round of jobless benefits expired, with Congress away and hope of the approval of a new tier diminishing. And Sara Murray of The Wall Street Journal highlights one of the worst facets of the unemployment crisis: Nearly half of the unemployed — 45.9 percent, or 7 million people — have been out of work for more than six months, the highest proportion since the Labor Department started tracking the statistic in 1948.” [...]


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JB
Comment posted June 2, 2010 @ 2:54 pm

Can you spell E-X-P-A-T?

I've been unemployed since January, 2008, and have sent out well over 3,000 resumes — all over the world! To date: I've gone on less than 15 interviews and have not had one job offer—yet, I have a BA degree, have published several papers, have over 10 years of specialized experience in my field and another 10 years of management and technology experience. For over a decade, I've made over $75,000 a year as a technical instructor… Now, I can't even land a job at Starbucks or Subway. NO ONE IS HIRING! And if they are, they are not hiring those of us who will obviously leave once something better comes along. We can only “dumb-down” our resumes so much…

This is my generations GREAT DEPRESSION. Make no mistake, the bitterness that is in our mouths will be felt come ELECTION DAY when EVERY INCUMBENT gets voted out of office. At this point – all of you are to blame either for voting against it; not being effective leaders and making it happen; or for simply being too damn worried about keeping your job than doing your job!

My plan? Take a job offer in another country and live the life of an Expat until (and if) this country recovers!

The debate over immigration makes me laugh! Unless that is, you are talking about a debate taking place in Australia, Italy, hell, even Costa Rica.


Carol
Comment posted June 2, 2010 @ 4:28 pm

Thirty three States qualified for the Federal enacted tier four unemployment extensions. The criteria by which a State triggered, and as such became eligible for the fourth tier, came as a result of a State's Unemployment Rate remaining at 8.5% for three consecutive months.

By enacting this important legislation, Washington set a precedent that it considered an 8.5% unemployment rate for an extended period of time to be unacceptably high, and as such warranted providing Americans with a much needed financial lifeline.

Given the aforementioned facts, would this not mean that with a current National Unemployment Rate of 9.9%, which was preceded by three consecutive months at 9.7%, would necessitate the creation of a tier five extension of unemployment insurance?

Josh Bivens of the Economic Policy Institute was quoted as saying that, “the nonpartisan Congressional Budget Office projects a yearlong average of 9.5% percent (unemployment) in 2011”, and Goldman Sachs predicts higher unemployment in 2011 than in 2010.

Congress should take a swift and active role in creating an extension of unemployment insurance beyond the current 99 week limit through the end of 2010. . In this election year American's can and will continue to affect change at the polls.


Carol
Comment posted June 2, 2010 @ 4:35 pm

Be sure and listen to the “Unemployment Roundtable”,
website: http://www.blogtalkradio.com/tier5

Show airs Mondays and Thursdays

2:00 to 3:00 PM EST and 11:00 to 12:00 PST

Call in number: 1 (347) 934-0211

Be sure and also visit the website for the unemployed at: http://www.tier5.webs.com

And join the new organization AFLTU, “Advocacy for the Unemployed.”

It is Free to join and they never ask for donations.


Carol
Comment posted June 2, 2010 @ 4:41 pm

Here is another good website for the unemployed. Especially for the long term unemployed. Called “Jobless Unite.” http://JoblessUnite.yolasite.com

Also join the “ADVOCACY FOR THE LONG TERM UNEMPLOYED.”

Director Gregg

http://www.afltu.webs.com


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Carol
Comment posted June 2, 2010 @ 6:49 pm

I am long term unemployed. College educated and 49 years old. Have exhausted all extensions and have sent out thousands (yes, thousands), of resumes. Yet congress ignores us. I am a hard working middle class American. It is all slowly going away. Next will be my home!! We need help congress, before the middle class end up living in tents!!


June
Comment posted June 2, 2010 @ 7:54 pm

I cannot wait to vote these guys out. I love how they prioritize their stupid health care bill and BP oil spill over their own people. Dems, get ready for a vacation were voting you guys out in November! Obama, get your retirement ready, you will be a one term president (unless you somehow manage to get illegal votes from your immigration agenda).


sam
Comment posted June 2, 2010 @ 10:20 pm

Not only does the senate need to act on extending unemployment but we need more stimulas money to boost employment. I've been hearing some great job search advice on http://www.jobtalkamerica.com, the interviews are not only interesting but fun to listen to


dee
Comment posted June 2, 2010 @ 10:49 pm

You are so right. These politicians are living in castles in the air.
They have no idea how hard it is out here. I too am out since 2008 and sent out thousands of resumes. If you do get an answer from a job it is usually a scam. Bad enough we are down and out we have to have creeps preying on our venerability. We need tier V. I have been without any unemployment since the end of March. What are we to do becomeawelfare State?


Gloria
Comment posted June 2, 2010 @ 10:57 pm

Did you know Iraq just cut their defense budget by 50% and yet our Congress just approved an increase in our defense spending for Iraq this past week? We can't afford to support this war any longer. Congress seems to care about foreign aid more than those that live in the USA. It is time we stop trying to save the world and look within our own borders. As an American I am ashamed New Orleans is still in the state they are in. I am ashamed of the number of homeless and hungry living here. Congress it is time to bring the jobs back and help our own for a change. Dems you promised change!


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Comment posted June 3, 2010 @ 12:13 pm

Congress wasn’t worried about the deficit when that big insurance company and Wall Street execs were giving themselves bonuses with taxpayer money!!! Next election – let Congress feel the sting of the unemployment lines!!! – How many years have you paid taxes? 30? 40? Your government bails out bankers and Wallstreet execs using your tax dollars – but unemployment is allowed to expire? What happened to “by the people” or “for the people”? Or are the big campaign contributors the only “people” who count to congress? They are playing games AGAIN FOR THE THIRD TIME while you are wondering how to feed your kids? Figure it out! Malfeasance – Failure of a public official to perform their duties!!! Next Election MAKE YOURSELF MATTER BY VOTING!!! 10% unemployment carries 10% of the vote! Use it!! Fire them all next election or recall every Congress member NOW for Malfeasance – Failure of a public official to perform their duties!!! Next Election – Lets get people elected who actually represent tall the People- this current congress represents only special interest groups!


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Comment posted June 4, 2010 @ 3:47 am

Nice of Mr Obama to totally ignore this problem. Is he a man for and of the people? No, just another politician and a crook.


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Eamonn Coughlan
Comment posted June 5, 2010 @ 12:18 pm

Did I post this comment ? I am in the same situation except that I have dual-citizenship and have also been searching in “my other country” without results. Since I am 57 I doubt if something will break. I was thinking about moving to Haiti at least the USA will provide with with a tent and feed me.


Robin
Comment posted June 6, 2010 @ 12:45 am

Cmon Congress, don't be a BP in the Gulf leaking thousands of Americans into poverty and hunger daily because of your 99 week cap that is supposed to work? I've paid into SS for over 40 years, why not release these funds earlier?By the way Congress persons, my Cup of Noodle diner was great, how was your steak?


Frank B
Comment posted June 6, 2010 @ 11:20 am

It is important for people to realise that there was billions set aside for a tier 5, however teacher and police unions gave some campaign contributions to get those billions shifted to “money for states” (look it up, just passed before recess), to keep some teachers and police from having to collect week 1 of unemployment (being laid off). Often these people making up to $200,000 a year never realise the mistake they make until they see their veal being eaten in front of them. I'm really only trying to warn them since this always happens in history. And the situations for states is bad enough that very little of that is going to help police and teachers anyway, buy gold unions!


bill
Comment posted June 6, 2010 @ 12:02 pm

I agree, history shows that royalty, has never fared too well in economic upheaval. Those paying in campaign contributions to retain taxpayer funded 'royalty' jobs should know that the thin veneer of anonymity they operate under is easily narced through. And going up against people trying to retain lifelines of $15,000 a year in unemployment, tier 5 people, has to be the dumbest move those unions ever made, buy gold, unions!


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rp421
Comment posted June 12, 2010 @ 3:48 pm

PASS THE DAMN BILL ALREADY
If readers care at all about the unemployed, please contact your senators to pass HR 4213, the “extenders” bill to continue emergency UI for the unemployed. This does not add weeks to benefits, but it just allows those who have run out of state UI to move to the federal emergency fund.
There is ONE JOB opening per 5 JOB SEEKERS. Don't punish the unemployed. There is no financial incentive to stay on UI any longer than necessary.


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