Long-term unemployment tumbles in March as job market stays hot

Long-term unemployment tumbles in March as job market stays hot


A job seeker receives information from a recruiter during a job fair in Miami on Dec. 16, 2021.

Eva Marie Uzcategui/Bloomberg via Getty Images

The ranks of the long-term unemployed fell again in March, edging closer to prepandemic levels as the job market offers ample opportunity for workers.

Long-term unemployment is a period of joblessness that lasts 27 weeks or more (or, at least six months). It’s generally a financially precarious period for households in which it’s harder to find a job and unemployment benefits are unavailable.

The number of long-term unemployed declined by 274,000 in March, to 1.4 million, according to the Labor Department’s monthly jobs report issued Friday.

In March 2021, the long-term jobless accounted for 43.2% of all unemployed individuals, a pandemic-era high and just shy of the all-time record 45.5%, which was set in April 2010 in the wake of the Great Recession.

By March 2022, the share had nearly halved to 23.9% and was approaching its prepandemic level of roughly 19% to 20%.

Strong job market

The improvement comes amid a labor market that has been particularly strong for workers.

Job openings (an indicator of employer demand for workers) are near record highs and layoffs near record lows as businesses aim to hold onto the workers they have.

“It’s remarkable how quickly the economy has recovered given how deep the crisis was,” Zhao said.

It’s unclear how long the worker-friendly labor market will persist. The Federal Reserve started raising interest rates to cool down the economy and reduce inflation, which is running at its fastest pace in 40 years. The war in Ukraine and any unforeseen Covid-19 curveballs pose potential headwinds to the U.S. economy, too.





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