Around 4.5 million Americans may not be able to find a job for more than six months, while nearly 2 million will need more than a year, a new paper found.
While many Americans have already returned to their jobs or found new ones after the coronavirus pandemic upended the economy this spring, millions may still remain out of work for a long time, according to a new analysis.
Before the start of the pandemic, less than 2% of the labor force was in long-term unemployment. The current pandemic will likely increase this to 3%, compared with 4.5% of the labor force in the Great Recession, according to Chodorow-Reich. The unemployment rate decreased from 14.7% in April to 11.1%, but the number of people filing for unemployment insurance has steadily remained between 2 and 1 million per week for the last 8 weeks. Last week, there were 1.4 million filings for unemployment insurance last week, the first increase since March.
Another issue is that many of the temporary layoffs are turning into permanent ones and making it harder for people to find employment.
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