Source: the balance
Long-term unemployment is edging toward a higher peak, almost a year into the pandemic-fueled downturn.Workers are deemed to be “long-term unemployed” when their jobless spell is longer than six months. For some, household income may drop significantly. But the dynamic also makes finding a new job more difficult, scars workers’ long-term earnings potential and raises the odds of losing a job.
This is a financially risky period in which household income may drop, finding a job is harder and future earnings potential typically suffers, according to economists. Almost 40% of jobless workers are long-term unemployed, as reported by the Bureau of Labor Statistics, nearing the record 46% set following the Great Recession