(click to enlarge) The Federal Reserve has their eye on Long-term Unemployment. This is the number of individuals who have been out of work for 27 weeks or longer.
Federal Reserve Chair, Janet Yellen, is focused on the problem of long-term unemployment. Her research suggests that the longer someone is unemployed, the more that person falls behind on the skills needed to find and hold a job. Therefore long-term unemployment raises the risk of falling permanently out of the work force. When the size of the labor force declines, the unemployment rate also falls. But a smaller work force also slows productivity growth, causing economic growth to slow down.
Federal Reserve Chair, Janet Yellen, is focused on the problem of long-term unemployment. Her research suggests that the longer someone is unemployed, the more that person falls behind on the skills needed to find and hold a job. Therefore long-term unemployment raises the risk of falling permanently out of the work force. When the size of the labor force declines, the unemployment rate also falls. But a smaller work force also slows productivity growth, causing economic growth to slow down.
(click to enlarge) Some analysts may say that the remaining workers get more bargaining power and drive up wages. That could mean rising inflation and weak productivity growth—not a good outcome. We tend to feel that the current work force is doing more for less. Currently about four million people have been out of work for more than six months, representing about 38% of the total unemployed. That's down from the peak of almost 50%, but still higher than every other postwar recession. And we've been out of a recession for more than four years. Watch for the Fed to key in here as they step through their playbook.
Recent information from the Bureau of Labor Statistics shows the number of long-term unemployed (those jobless for 27 weeks or more) increased by 203,000 in February 2014 to 3.8 million; these individuals accounted for 37.0 percent of the unemployed. The number of long-term unemployed was down by 901,000 over the year. Our graphic shows a downward trend. Map below shows unemployment by state. How are you trending? Sua Sponte.
Bradford C. Bruner for Sua Sponte Wealth Management
Recent information from the Bureau of Labor Statistics shows the number of long-term unemployed (those jobless for 27 weeks or more) increased by 203,000 in February 2014 to 3.8 million; these individuals accounted for 37.0 percent of the unemployed. The number of long-term unemployed was down by 901,000 over the year. Our graphic shows a downward trend. Map below shows unemployment by state. How are you trending? Sua Sponte.
Bradford C. Bruner for Sua Sponte Wealth Management
(click to enlarge)
