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Friday, December 27, 2013

10 Reasons That Long-Term Unemployment Is a National Catastrophe

Today's post was shared by Mother Jones and comes from www.motherjones.com

Unemployment is bad. Obviously long-term unemployment is worse. But it's not just a little worse, it's horrifically worse. As a companion to our eight charts that describe the problem, here are the top ten reasons why long-term unemployment is such a national catastrophe:
  1. It's way higher than it's ever been before. When the headline unemployment rate peaked in 2010, it was actually a bit lower than the peak during the 1980 recession and only a point higher than the 1973 recession. As bad as it was, it was something we'd faced before. But the long-term unemployment rate is a whole different story. It peaked at a rate nearly double the worst we'd ever seen in the past, and it's been coming down only slowly ever since.
  2. It's widespread. There's a common belief that long-term unemployment mostly affects older workers and only in certain industries. In fact, with the exception of the construction industry, which was hurt especially badly during the 2007-08 recession, "the long-term unemployed are fairly evenly distributed across the age and industry spectrum."
  3. It's brutal. Obviously long-term unemployment produces a sharp loss of income, with all the stress that entails. But it does more. It produces deep distress, worse mental and physical health, higher mortality rates, hampers children’s educational progress, and lowers their future earnings. Megan McArdle summarizes the research
    findings this way: "Short of death or a debilitating terminal disease,...
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