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Business August 23, 2021 2 mins read

3.2 Million Americans are Still Long-Term Unemployed

Business ı By Rochdi Rais

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Over a third of jobless Americans in August were long-term unemployed. About 3.2 million people or 37.4% of the total unemployed have been out of business for at least six months, the official barometer for long-term unemployment, the U.S. Bureau of Labor Statistics reported Friday.

World War II and the Great Recession are the only periods during which over 30% of jobless Americans were long-term unemployed. In April 2010, the rate escalated to a scary 45.5%. Not to mention that staying out of work for long periods means greater financial hardships. According to labor economists, finding a new job is more difficult than ever and it even increases the odds of losing a future job.

About 3.8 million long-term unemployed were receiving that federal assistance as of mid-August, the U.S. Department of Labor reported Thursday. Most Republican state governors withdrew the federal aid in June or July before their official nationwide expiration.

Meanwhile, other federal aid will soon end too. On Aug. 26, the Supreme Court has struck down a national eviction ban that Biden’s administration installed. This might affect millions of people who are late on their rent.

In August, the United States has added 235,000 jobs. This is lower than the 720,000 marks that economists expected, and much lower than the 1 million added in both June and July. The economy still lacks 5.3 million jobs than the pre-pandemic levels.

Despite that slowdown, Biden administration officials pointed to average job growth of 750,000 in the past three months and a drop in the unemployment rate to 5.2%, the lowest since the pandemic started.

“But we have work to do to beat back the delta variant and build an inclusive economy,” U.S. Labor Secretary Marty Walsh said. “Rising infection rates in some states hit the food and retail sectors hard, where workers of color and women are disproportionately represented.”

 

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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