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The Effects Of Long-Term Unemployment And How To Seek Help

By Chris Kolmar
Nov. 27, 2022

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Unemployment is rarely easy, both for the unemployed and their community. People want to work not only to make a living but also to feel like they have something to contribute to society.

Long-term unemployment has a great impact on this. When people are out of work for a long time, it causes financial, physical, and mental strain for many different people.

Key Takeaways:

  • The Bureau of Labor Statistics defines the long-term unemployed as anyone unemployed for over 27 weeks and is actively seeking work.

  • As of October 2022, there were 1.2 million people considered long-term unemployed in the United States.

  • Along with the stress that comes with unemployment, there is a lack of medical care that compounds health issues.

  • There are resources for the long-term unemployed, including temp agencies and job centers.

The Effects Of Long-Term Unemployment And How To Seek Help

What Defines Long-Term Unemployment?

The United States Bureau of Labor Statistics (BLS) defines long-term unemployment as unemployment lasting more than 27 weeks, or roughly six months.

The BLS only defines individuals who are actively seeking work as unemployed. The 27-week duration starts from when the worker last held a position.

Who Is Affected by Long-Term Unemployment?

For the first time in over 50 years, the Retirement Equity Lab at The New School reported that workers over the age of 55 face a higher rate of unemployment than younger workers in the middle of their careers.

The BLS also tracks which demographics are impacted by long-term unemployment.

As of October 2022, the unemployment rates by race were:

  • Black. 6.3%

  • Hispanic. 4.1%

  • Asian. 2.7%

  • White. 3.2%

Long-term unemployment accounted for 19.5% of the total unemployed, or 1.2 million people.

The Effects of Long-Term Unemployment

Persistent unemployment impacts affected workers in a number of both permanent and temporary ways.

Some major, common challenges include:

  • Job-search. The longer you’re unemployed, the more difficult it becomes to re-enter the workforce.

    This is due to a decay in your marketable skills, as well as the negative stigma that many employers will associate with long gaps of employment on any job applicant’s resume.

    A 2017 study by the New York Fed’s Liberty Street Economics reported that unemployed job-seekers were less likely to successfully find a position than employees making a career switch, even if the former group spent much more time applying for jobs.

    The unemployed job seekers in the study on average applied for 8.1 jobs a month and spent over 8.4 hours a week. Meanwhile, the employed group on average only applied for 1.2 jobs each month and spent 1.2 hours each week.

  • Health. Numerous studies show a significant link between chronic joblessness and negative physical and mental health effects.

    A 2019 study by BMC public health found that unemployed individuals were 23.6% more likely to suffer from depression, anxiety, and other mental illnesses.

    They were also 83% more likely to develop a stress-related condition, such as arthritis, heart attack, and stroke.

    These issues are compounded by the fact that unemployed individuals often don’t have the same access to health insurance provided to workers, making them unable to seek treatment for their medical problems.

Resources for Long-Term Unemployed Workers

Fortunately, there are a number of available resources that provide financial assistance and ways to regain employment for those currently out of work.

These include:

  1. Extended unemployment benefits. Even if you’ve exhausted all the typical unemployment benefits, you may be eligible for more help.

    Each state has different guidelines that dictate your eligibility for enhanced employment benefits that usually depend on your work history.

    Simply Google “[your state] extended unemployment benefits eligibility” to see whether you qualify and how you can apply for help.

    Most states will have an unemployment website that will provide you with all the information you need.

    There is also various federal legislation that provides extra help to unemployed workers.

    For example, the federal government’s Extended Benefits (EB) program allows for additional unemployment insurance benefits during time periods of unusually high unemployment, such as during the current coronavirus pandemic.

  2. American Job Centers. American Job Centers (AJCs) receive funding from the U.S. Department of Labor’s Employment and Training Administration to provide employment assistance to workers facing difficulty during the job-search.

    There are AJCS in every state, totaling nearly 2,400 locations across the country.

    Each AJC offers career counselors that work with unemployed individuals to assess their skills, interests, and experience.

    They’ll provide you with job suggestions and free job-specific training opportunities. You can also attend workshops to help your resume writing and interviewing skills, as well as participate in local recruiting events.

    All locations are currently offering their services online and by phone.

  3. Job resources for people of color. Our experts here at Zippia have assembled a list of career websites dedicated to people of color and other minority groups.

    You’ll also find numerous professional groups and communities that can provide you with support and advice, no matter your specific industry.

  4. College career services. If you’re a college student or graduate, check with your school’s career services offices to see what alumni resources they provide.

    The vast majority of colleges offer many useful job-search tools, such as:

    • Career networking

    • Resume and cover letter writing assistance

    • Interviewing skills workshops

    • Career fairs

    • Job listings exclusive to alumni

  5. Resources for older unemployed workers. The AARP offers useful information for how to regain employment or seek assistance if you’re over the age of 45.

    Another useful resource is the Senior Community Service Employment Program (SCSEP). The SCSEP provides work-based training programs for older unemployed Americans.

    By participating in SCSEP, you’ll be given community service roles at both public and non-profit facilities.

    Depending on your interests and abilities, you may work at everything from senior centers and day-care centers to schools and hospitals.

    You’ll receive an average of 20 hours of work each week, paid at the highest rate between the local, state, and federal minimum wage.

    There are a number of eligibility requirements that you’ll need to meet.

    A few important ones include:

    • Over the age of 55

    • Unemployed

    • Family income below 125% of the federal poverty threshold

  6. Temp agencies. Seeking employment through a temp agency can be a great way to reenter the workforce.

    Temp agencies will assess your abilities and experience and connect you with job vacancies in a related field.

    As you’re not interviewing directly with the contracting company, any long job gaps on your resume will play a smaller part in determining whether or not you get the job.

    Temp agency work will also provide you with something to add to your recent work history. This will increase your ability to find further employment on your own.

    Depending on the company and your level of performance, you may even be able to turn your temp work into a full-time, permanent position.

    Most temp agency-company agreements dictate that the company cannot fire workers directly, even in at-will employment states, until they first notify the temp agency that they’re dissatisfied with the worker.

    If the position you obtained through the temp agency isn’t working for you, you’ll also need to notify the temp agency ahead of time before quitting.

    If you’re looking to find employment as quickly as possible no matter the industry, looking up “temp agency near me” will bring up several local options.

    If you would prefer only to work in a certain industry, then look up “best temp agency for [industry].” These agencies tend to operate nationwide, so you’ll likely always be able to find an office near you.

  7. Apprenticeships and training programs. The coronavirus pandemic has affected some industries much more than others.

    If you’re considering a career change, Zippia offers many resources to help you find apprenticeships and training programs that can find you work quickly and even provide income in the meantime.

Unemployment Resources and Assistance For Veterans

Although the unemployment rate for veterans has dropped from its 11.7% peak in April 2020, it’s still much higher than it was in previous years.

If you’re an unemployed veteran or know someone who is, look into:

  1. Unemployment Compensation for Ex-Servicemembers Program (UCX). If you’ve recently started to transition into civilian life, the UCX can provide you with unemployment benefits as if you were recently laid off from a salaried position by a private company.

    The program will use your final pay grade before retirement from the military to calculate your compensation.

    The eligibility requirements differ by state, but you’ll typically need to be an active job seeker, have served for over 180 days, and not be on terminal leave.

  2. Department of Veterans Affairs Vocational Rehabilitation Education (VRE). The VRE provides special assistance for disabled veterans in the form of job training and related resources.

    The program will direct you to numerous other federal and state programs that practice hiring preferences for disabled veterans.

    You may also be eligible for free job-training, as well as housing stipends that will offset most or all of your living costs while you’re attending the program.

    One important caveat to note however is that participating in VRE may render you ineligible for other veteran unemployment resources.

    For example, participating in VRE will disqualify you from drawing compensation from UCX.

Long-term Unemployment FAQ

  1. What causes long-term unemployment?

  2. The two main causes to long-term unemployment are cyclical unemployment and structural unemployment. Cyclical unemployment results from changes in the economy, such as during a recession. Structural unemployment occurs when an employee’s skills are no longer in demand.

    Unemployment is the result of many complex socio-economic factors, however, these cyclical and structural unemployment highlight broad factors that create conditions for long-term unemployment.

  3. Why is long-term unemployment important?

  4. Long-term unemployment is important because it affects the health of a country and its citizens. If an economy suffers from high rates of long-term unemployment, it is likely in bad shape. High rates of long-term unemployment can cause unrest as economic insecurity can lead to physical and mental health crises.

    Understanding the trends of long-term unemployment help a country understand its strengths and weaknesses.

  5. How long do unemployed benefits last?

  6. Most unemployment benefits last for 26 weeks. This depends on the state you live in. 10 states provide fewer than the 26 weeks: Alabama, Arkansas, Florida, Idaho, Iowa, Kansas, Missouri, North Carolina, and South Carolina. Two states, Massachusetts and Montana, provide unemployment for more than 26 weeks.

    The length of your unemployment can vary based on your situation, such as income and reasons for unemployment. Make sure to check with your state’s unemployment office when considering unemployment benefits.

References

Bureau of Labor Statistics. “Labor Force Statistics from the Current Population Survey
CPS CPS Program Links
Accessed on [Month] [Day], 2022.

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Author

Chris Kolmar

Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. He has hired over 50 people in his career, been hired five times, and wants to help you land your next job. His research has been featured on the New York Times, Thrillist, VOX, The Atlantic, and a host of local news. More recently, he's been quoted on USA Today, BusinessInsider, and CNBC.

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