But it’s also worth taking a step back and looking at the broader disaster of long-term unemployment in the United States. Here are seven reasons why this issue still very much matters:
# Long-term unemployment is still at its highest level since World War II.
# The ranks of the long-term unemployed include all types of workers, according to a survey by the Urban Institute. There are young workers who have been out of work for more than 27 weeks. Married workers with kids. Older workers. College-educated workers. High-school dropouts. The problem touches nearly every demographic group you can think of.
# It’s possible that the long-term unemployed are simply less employable. But there’s also evidence that businesses actively discriminate against these workers. In one recent study, Rand Ghayad of the Boston Fed sent out a flurry of fictitious résumés to different employers, tweaking some of the characteristics of the applicants. He found that most employers won’t even look at the résumés of the long-term unemployed, even if they’re otherwise perfectly suitable.
# All this long-term unemployment is destroying the U.S. economy. Earlier this year, three economists at the Federal Reserve published an unsettling paper arguing that the long-term productive capacity of the U.S. economy has been greatly diminished. The reason? Long-term unemployment: — Much more.
Pretty much the way I see it from my vantage point. Don’t believe all the rhetoric spewed out on TV news.