A casual glance at the job market makes it appear that
things are a lot better. The unemployment rate was 7.2% a year ago. Now it's
5.9%. But there's a dark side to this recovery: Millions of people are still unemployed
or underemployed. A close look at three types of frustrated job seekers
underscores why the American economy is still struggling.
1. The 'glass is
half-empty' workers: Part-time jobs remain a big problem. Over seven
million Americans want full-time work, but can only find part-time hours. Statisticians
dubbed this group "involuntary part-time workers."
There are 54% more part-time workers now than when
the recession began in December 2007. In other recent recessions, the
number of part-timers peaked and then quickly dropped. Since this recession
ended, it peaked and is now trickling down very slowly, according to data from
the Bureau of Labor Statistics.
Part-time employment raises questions about the quality of
jobs people are finding in the recovery.
2. The 'I'm done'
crowd: Some job seekers want work, but see such dim chances of
employment, they stopped looking for a job four weeks ago. For a slew of
reasons — skills, age or no available work — these would-be workers have
stopped searching for jobs. These are discouraged workers.
The number of discouraged workers is down considerably from
its peak in December 2010. But unfortunately, the current number, about
700,000, is almost double what it was when the recession began.
Discouraged workers represent only a fraction of the issue
though. The "missing," workforce that government data does not
capture is significantly higher. Missing workers are not employed or looking
for jobs because of poor employment prospects, according to a report from the
Economic Policy Institute in Washington, a left-leaning think tank.
3. The 'lost
workers': People who can't find work for months represent one of the
most concerning indicators of the current job market.
At the start of the recession, 17% of all unemployed people
were out of work for six months or longer. In September, almost a third of the
unemployed population was jobless for half a year or more. Although long-term
unemployment has declined a bit recently, policymakers are still concerned.
The Obama administration announced new measures this week
to help long-term unemployed workers find jobs.
Examined a little closer, long-term unemployment is becoming
a bigger issue for women. About 35% of long-term jobless workers were women in
2007. Now that number is 44%, according to a recent study by the Congressional
Budget Office. Still, men make up the majority of people looking for work for
six months or more.
The impact of long-term unemployment goes beyond money. Economists
say the job market will continue to improve, but may take years for these
economic wounds to fully heal.
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