U.S. Long-Term Unemployment Reaches Decade High Amid Mixed Labor Market Data
While recent U.S. employment data shows strength with 165,000 jobs added in October and a lower-than-expected unemployment rate of 4.1%, a concerning trend is emerging regarding the duration of joblessness. The average duration of unemployment rose to 27.1 weeks in October, marking the longest period outside of the pandemic era since 2016. Approximately 2 million Americans—representing 27.6% of all unemployed workers—are now classified as long-term unemployed. This shift suggests a 'low-hire, low-fire' environment where companies are hesitant to lay off staff but are also slow to add new positions. Experts warn that this trend could lead to skill depreciation and depleted savings for workers, especially as many exhaust their government unemployment benefits after 26 weeks.
Tickers: $AXP
Topics: Bureau of Labor Statistics labor market trends long-term unemployment unemployment rate