ST. PETERSBURG — The U.S. government defines long-term unemployment as being jobless for at least 27 weeks. More than 1.8 million Americans were classified as long-term unemployed in a given month this year. This number increased by approximately 45% from 2019 and approximately 55% from 2023, according to Bureau of Labor Statistics data.
Cory Stahle, an economist, said, "It tells us a lot about economic health." He added, "It tells us about how good of a job the labor market is doing at absorbing people." Carl Van Horn, director of the Heldrich Center for Workforce Development at Rutgers University, said, "Other than the death of a family member or a close friend, this is one of the most devastating things that people face." He also said, "It's a very serious health problem and an economic problem."
Parker Taylor, a resident of St. Petersburg, Florida, lost his job shortly before the 2025 Thanksgiving holiday. Since then, Taylor has applied to approximately 100 jobs and completed several interviews without securing new employment. Taylor has been employed consistently since his teenage years, previously working on a factory floor and most recently in medical sales. His current lack of steady income has halted his retirement planning and long-term investing strategy. He has also reduced spending on food, social experiences, and other expenses.
"This can't go on much longer without some type of catastrophic change to my life," Taylor said. "That this era of my life could affect my long-term future — my family's future, my future children's future — is something that I go to sleep thinking about."
Long-term unemployed workers account for roughly one out of every four jobless workers, according to U.S. government data. These workers generally do not qualify for most unemployment benefits, which are typically capped at 26 weeks. Actively job-hunting long-term unemployed workers may also face employer stigma due to resume gaps, according to labor economists.
Research has identified a potential link between long-term unemployment and depression. A Pew Research report indicates that long-term unemployed individuals are more than twice as likely to seek professional help for depression or other mental health challenges compared to those unemployed for under three months. A working paper also found that parental job loss increases the likelihood of a child repeating a grade by approximately 15%.
A study of Wisconsin state data showed that workers displaced during their prime working years are less likely to participate in social and community events. A Boston Federal Reserve working paper found that long-term unemployed workers' pay was approximately 32% lower after a decade compared to workers who had not lost employment. Workers unemployed for shorter periods experienced a 9% pay reduction over the same timeframe.
A nonfarm payroll report is scheduled for Friday to provide updated data on the U.S. labor force. Reports on job openings and private payrolls released recently showed stronger results than previously forecasted.