The president and chief executive officer of Hirequest Inc., Rick Hermanns, analyzes the workforce of the state of America and reveals where there is a high demand.
The United States labor market is in a relaxation scheme with relatively low unemployment, but a slower pace of hiring has made the share of long -term unemployed in an economic uncertainty.
The Labor Department’s Labor Statistics Office (BLS) follows the number of people in the labor market considered Long -term unemployedwhich has been defined as workers who have been unemployed for 27 weeks or more.
In April, the percentage of long -term unemployed as a share of the total unemployed pool increased to 23.5%, the highest level in three years, when the economy bounced from the cocovid pandemic and in the highest inflation in decades. He dropped to 20.4% in May and remained more than 20% since April 2024.
Allison Shrivastava, an economist of the hiring laboratory, in fact, told Fox Business that, although the economic data related to long -term unemployment can be “quite noisy” on a monthly basis, she noted that the “long -term trend evolves in an ascending direction”.
Employment growth continued to slow down in May in the middle of economic uncertainty
Long -term unemployment is used to measure the number of workers who have been unemployed for 27 weeks or more. (Yuki Iwamura / Bloomberg via Getty Images / Getty Images)
“This metric, in particular, I look at it with things like layoffs and leave the rates, and all this paints this image of a stagnated labor market,” she explained.
“We have a low unemployment rate, but all this kind of this kind tells me that if you are on the job market right now, you are probably feeling good. But if you are trying to get started on the job market, you probably have a really difficult period because even if no one really frees its workers, they do not add their workforce either,” said Shrivastava.
Recent graduates confronted with the “deteriorated” labor market because unemployment has reached the highest level for years
Long -term unemployment culminated during the cocovated pandemic and the great recession. (Reuters / David “Dee” Delgado / Reuters)
The share of long -term unemployed among all the unemployed has reached a summit of all times of just over 45% in 2010 and 2011 Great recession And slowly decreased during the decade, falling below 25% for the first time in 2016 and 20% in 2019.
He again jumped during COVID PANDEMIEReaching almost 43% in 2021, before diving below 20% in mid-2022 and reaching a post-pandemic hollow of 17.6% in February 2023.
The president of the Fed Powell says that the American economy in a “solid position” because the central bank weighs the timing of rates of rates
Liz Bentley, founder and president of a consulting company, told Fox Business: “It is definitely a difficult state not to be able to bounce back when they lose a job or even leave jobs as quickly as they thought.”
Long -term unemployment can withdraw the career prospects of a job seeker. (Amanda Andrade-Rhoades / For the Washington Post via Getty Images / Getty Images)
Bentley noted that workers who find themselves unemployed for a long -term period financial strains By savings due to a lack of income while lacking opportunities to generate income or save for retirement and other financial objectives.
This can also hamper the momentum. Bentley added that long -term unemployment is not unique to workers at a particular stage of their career.
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“It always happens to people in the thirties, the 1940s, 50s, no matter how you want to call mid-carrier. It strikes people of all ages, and it has a significant impact. In fact, we really encourage people to move quickly to return to the labor market if they are dismissed or they decide to make a change,” said Bentley.
