Long-Term Unemployment Still Accounts for More Than One in Four Unemployed Workers

Careers & Skills

About 1.9 million Americans had been unemployed for 27 weeks or longer in September, according to the latest federal jobs report.

Long-term unemployed workers represented 27.1% of all unemployed people, the Bureau of Labor Statistics reported Friday.

The number was essentially unchanged during the month, but it is an important career signal in a labor market where layoffs remain low and hiring has slowed.

For workers who have been searching for months, a low national layoff rate can feel disconnected from the actual difficulty of returning to work.

September’s data help explain why.

A stable job can be easier to keep than a new one is to find

Employers added only 29,000 jobs in September. At the same time, initial unemployment claims were 197,000 in the week ended September 26.

That combination means the labor market can be relatively stable for incumbent workers while still being difficult for people outside employment.

BLS also reported 5.8 million people outside the labor force who said they wanted a job, although they were not counted as unemployed because they had not actively searched during the prior four weeks or were unavailable to take a job.

The number of people marginally attached to the labor force fell by 236,000 to 1.5 million.

These categories have precise statistical definitions. They should not be added together casually or treated as one unemployment rate.

For job seekers, however, they reinforce a practical point: the headline unemployment rate does not capture every person who wants work or every difficulty involved in finding it.

What a longer search changes

A prolonged job search can require a different strategy from an ordinary employer switch.

Workers may need to widen the set of employers they consider, verify whether their target occupation is actually expanding locally, identify adjacent roles that use the same skills, and distinguish credentials employers routinely request from training that has little demonstrated hiring value.

That does not mean every long-term unemployed worker should retrain.

Training carries time and financial costs. The better question is whether a specific credential addresses a documented requirement in occupations with actual demand.

In September, BLS said employment continued to trend up in ambulatory health care, hospitals and nonresidential specialty trade contractors, though employment in all major industries changed little overall.

Those national figures are only a starting point. Local demand, prior experience, pay requirements and geographic constraints still determine whether an occupation is a realistic transition.

The latest jobs report therefore offers a more useful career message than simply “unemployment is 4.2%.”

For more than one-quarter of unemployed workers, the search has already lasted at least six months.

Sources

Featured photo: Officials talk outside the American Job Center in National Harbor, Maryland, at its grand opening in October 2021. American Job Centers offer free job-search help. Representative image; not connected to the September data. Photo: Maryland GovPics, via Wikimedia Commons (CC BY 2.0). Cropped from the original.

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