1.9 Million Americans Face Long-Term Unemployment

In June, 1.9 million Americans were experiencing long-term unemployment, meaning they had been jobless for 27 weeks or longer. This figure represents 27.3% of all unemployed individuals, an increase of 4% compared to the same period last year. The Bureau of Labor Statistics (BLS) reported this trend alongside a drop in the overall unemployment rate to 4.2% from 4.3% in May, largely due to a decrease in labor force participation.

The average duration of unemployment in June was 25.5 weeks. Long-term unemployment disproportionately affects workers aged 25 to 54, with those in their mid-20s and mid-30s accounting for the highest share of long-term joblessness at 27%. This situation is occurring amidst recent reports of significant layoffs from major technology companies, including Meta, Microsoft, and Atlassian, potentially leading to a surplus of job seekers relative to available positions.

Many laid-off workers may find their severance packages insufficient to cover the extended period of job searching. For instance, Meta offered U.S. employees 16 weeks of base pay plus two weeks for each year of employment. Similarly, Block provided 20 weeks of salary and an additional week per year of tenure to its laid-off staff. The standard healthcare continuation provided in severance packages can also vary from several weeks to months, adding to the financial strain on those affected.

Beyond the economic implications, prolonged unemployment also impacts mental well-being. A survey of 5,000 unemployed adults conducted by Talker Research in April found that only 23% reported feeling consistently motivated, while 31% expressed low motivation.