The Wall Street Journal reports nearly 2 million Americans have been unemployed
for at least six months. U.S. Labor Department data show June long-term
unemployment (27 weeks+) accounted for 27.3% of total unemployed, up 4
percentage points year-on-year and near the highest level since late 2021.
Overall unemployment remains low, so the stock of long-term unemployed is not
yet large enough to materially hit the economy, but analysts warn spillovers are
accumulating. Employ America senior economist Preston Mui said: "We haven't seen
large-scale layoffs in recent years, so short-term unemployment has stayed
relatively stable. At the same time hiring activity has fallen off noticeably.
Even if some long-term unemployed find jobs, the weak hiring environment means
more people keep joining the long-term unemployed pool, keeping the count
elevated."
