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Long Term Unemployment at Highest Level Since WWII

by Keith Koffler on January 15, 2013, 10:18 am

Long term unemployment under President Obama is at the highest level since at least the end of World War II, threatening to create a permanent underclass of workers who will find it difficult or impossible to obtain jobs in the future. What’s more, Obama’s insistence on repeatedly extending long term unemployment benefits may be fueling the unemployment problem.

According to data recently released by the St. Louis Federal Reserve, the average duration of unemployment is now at about 40 weeks, double the previous highest level of about 20 weeks that prevailed during the last three recessions.

long term unemployment

A separate paper released by the Boston Federal Reserve paints a pernicious picture of the problem: Employers seem to be throwing out the resumes of the long-term unemployed and only hiring those who have been without a job for less than six months. Meanwhile, with the guarantee of benefits rolling in, the long term jobless might not be looking aggressively enough for work, the paper states.

This suggests those who just had their unemployment benefits renewed for another year under this month’s fiscal cliff deal may need the benefits renewed again next year. And since the failure to get jobs is related solely to the length of unemployment – age, education and worker type do not seem to be a factor – Obama’s ambitious plans for funding worker training programs may have little effect.

Since 2008, Congress has voted to extend unemployment benefits ten times at a cost of more than $500 billion. The latest extension raised federal spending by $30 billion.

H/T to Doug Ross @ Journal and Matthew O’Brien at The Atlantic.

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{ 44 trackbacks }


davidkachel January 15, 2013 at 4:43 pm

And I thought the stupidest president in history was Jimmy Carter.
Sorry Mr. Carter.

Buzz January 15, 2013 at 4:58 pm

Yep, and it is going to get longer. Hope all you dim-witted wet-pantiel liberals who put this moron back in office enjoy standing in the unemployment and food stamp lines.

Voice of Reason January 15, 2013 at 5:26 pm

Obama and the Democrats own this mess.

Chris Edens January 15, 2013 at 5:38 pm

Meanwhile, while this REAL crisis that will effect all these “innocent poor little children”. Our government is going after theatrical gun legislation.

They won’t have to be worried about being a gun violence victim they will just starve or freeze to death with little hope of the “American Dream”.

Da Mean One January 15, 2013 at 5:44 pm

I am glad that this came out after the election. During the election we were bombarded with stories of how good the economy was.
After all, We had to re-elect President Obama no matter what the cost!

roger January 15, 2013 at 5:58 pm

Yup, all part of the Obama agenda: Continue to create dependency in exchange for the sheeples’ votes to perpetuate our slouching towards the Gamorrah of tyranny. As Sonny and Cher sang years ago, folks, “And The Beat Goes On…”

Mitch Pawl January 15, 2013 at 6:17 pm

When the loser in the Oval Office continues to give people free handouts, called unemoyement, why should people look for a job??? I was on hnemployement once, and I moved to another part of the country to get a job. I did what I had to, not drink off of the teat of America for. 2+ years.

I was embarresed to take money. I guess the free loaders think differently.

king obama stinks January 15, 2013 at 6:54 pm

TAKER NATIOn doesn’t care about unemployment or jobs. They voted for free stuff.

rwooburn January 15, 2013 at 8:05 pm

Does anyone here really believe the democrats and obama want jobs? They are best served by a lower class unemployed dependent voting block.

Failed Obamessiah January 15, 2013 at 8:53 pm

Three words = Global Obama Depression

walls January 15, 2013 at 8:58 pm

All hail Obama, our ‘Lord God and Savior’. Pass the fried chicken.

Marty Marion January 15, 2013 at 9:35 pm

Get him out!

Read critically January 16, 2013 at 4:15 am

I agree and hope the impeachment proceedings commence 10 minutes after he announces his 19 executive orders on gun control.

Danceswithtruth January 16, 2013 at 10:44 am

It will never happen. Too many Dems that won’t vote to impeach. Too many Repubs that have no idea what a spine is. Too many “fat cats” sitting in luxury who have no intention of throwing away their power and the good life for us peons.

D Roamer January 15, 2013 at 11:23 pm

It should be common knowledge that if you stifle the high earner employer/business owner with more taxes, regulations, such as forcing obamacare on the employer, they will layoff, shut down, go part time and move out. Certainly not a climate for growth and increased employment.

It’s going to get worse.
The gimme generation herd will not understand.
A credit to our school systems socialist 50 year agenda has gained a strong position.
God help us.

Steve in St. Louis January 16, 2013 at 12:39 am

Perhaps they could give a tax break to companies which hire the long term unemployed.
Otherwise time to start programs like the Civilian Conservation Corps which they had during the depression for those who could not find work due to no jobs or work being available.
These people need work and should be provided some type of employment, especially on an interim basis until the economy picks up. Hopefully it will at some point.

Read critically January 16, 2013 at 4:12 am

Companies already get tax breaks for hiring long term unemployed, military veterans, disabled veterans or their spouses and it is not working. Sorry to break the news to you, but this is the new economy and those on the back end of the echo boomers that are long term unemployed will live their lives out in poverty, because help is not coming and they already cut their social security if they happen to live long enough to see retirement. Obama is more concerned with taking care of the illegals, foreign interests, insurance companies, and spying on everybody than the American citizens he is suppose to represent. That’s why he wants every body disarmed. It has nothing to do with the children of Sandy Hook as children go to bed hungry or live in shelters all across America.

Kurt January 16, 2013 at 3:24 am

But creating a permanent underclass of jobless people is just what Obama wants to do. He needs more and more people dependent on Big Brother, because that means more and more voters for the Democrat party.

Read critically January 16, 2013 at 3:58 am

“Obama’s insistence on repeatedly extending long term unemployment benefits may be fueling the unemployment problem. Or the long term jobless might not be looking aggressively enough for work”

I wish the media would stop making these types of statements, because it is totally untrue. How about the fact that he keeps extending unemployment, so that corporations don’t feel so guilty about kicking people to the curb to improve their bottom line so they can send their profits overseas and avoid paying U.S. taxes. Or how the stupid taxpayers bailed out banks and likes of GM so they could turn around, lay people off and/or build 11 plants in China. These statement represents more of the truth, and I read the terms of the fiscal deal – did you?

Boris M Khudenko January 16, 2013 at 7:54 am

The solution is not in training workers. The problem is in the changing means of production. The production is more automated and, hence, more efficient. It needs less and less workers, it uses more and more robots, and computers. But the pool of consumers shrinks, thus reducing the need in production. Following Karl Marx, updated, the production means and the the production relationships are in conflict. The conflict can be resolved by changing production relationships: further reduction of work time, creation and expansion of new services (arts and entertainment, sports, continuous education, preventive medicine, …). In other words, the production relationships and means f production must change to accommodate almost all people in the active and productive life.

Bob January 16, 2013 at 8:24 am

The fundamental deception is that all the jobs claimed as added in the past year or two are nothing like the jobs that were lost.

When you’re counting 1 . . 2 . . 3 . . ., a job at Burger King counts the same as a job as a teacher and a job in a call center counts the same as a job as a middle management employee.

But when you’re counting real economic gain there has been just a fraction of the gains implied by counting numbers of jobs instead of the value of the jobs.

There’s more to write about, but just starting with an understanding of this reality can put a person on the right path.

ernaldo January 16, 2013 at 8:29 am

Please, media traitors…distract me from this awful news! Snooki, Kardashian, Armstrong or Moochelle do something silly lately?

xsnake January 16, 2013 at 9:08 am

I don’t blame the regime….they are doing as expected. The blame goes to the repulsicans…..for losing the easiest to win Presidential race in history. They’ve made losing an art.

CletusTJudd January 16, 2013 at 9:14 am

Well it explains WHY Obama’s so obsessed with guns. Distraction from the economy. I read that people are much more concerned about that than guns.

Rico February 7, 2013 at 12:26 am

“This suggests those who just had their unemployment benefits renewed for another year under this month’s fiscal cliff deal may need the benefits renewed again next year.”

Except that’s not how it works. All they are extending is the existence of the federal extension program. Up until early last year, the maximum number of weeks an individual could receive in unemployment benefits was 99 (26 state plus 73 federal). Now that’s been cut back to 73 (26 state plus 47 federal). I believe this fact has been very poorly communicated to the general public, many of whom believe that the latest extension provides all current beneficiaries with income through the end of 2013 if needed.

rOc1y June 26, 2013 at 11:43 pm

239394 477194Hey there, Can I copy this post image and implement it on my private internet log? 895819

Debbie December 20, 2013 at 8:51 pm

Why in the world is nobody addressing unemployment? My husband and I are in power plant construction. I have been layed off longer then him. It’s looking promising for upcoming work in the new year. But it may take a few months to get hired in. What do we do if we are cut off? We are fortunate enough to make a good living, and can last a little longer on unemploymen, than others. Our job requires moving to where the work is. If they don’t extend or pass benefits, I don’t have a clue how we will be able to get there. I am so much more worried about other people who will be devistated by losing benefits, more than myself. We are all already not having Christmas because of fear of what is to come. Are they going to build and make more shelters and food banks? That is where many of us will end up, and very quickly, without extensions. Many people say its crap we can’t find a job, they all have one. Is Not as easy as it seems. It won’t take more than a few weeks for people to run out of money for food, utilities, rent…… Even toilet paper to wipe their ass! Maybe all the congress members, who don’t care about anything but themselves, will be willing to take in the millions of people they are going to put on the streets? More than just wondering……. Worried and scared! Could somebody, please let us know what to do?