Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Long-Term Unemployment May Be Unresolvable in Current Economic System
http://www.washingtonpost.com/business/economy/long-term-unemployed-struggle-to-find--and-keep--jobs/2014/04/18/134c48f6-c4ad-11e3-bcec-b71ee10e9bc3_story.htmlNew research tracking people who have been out of work for six months or longer found that 23 percent of them landed a job within a few months of the study. But a year later, more than a third of that group was unemployed again or out of the labor force altogether.
<...>
Other economists have demonstrated just how difficult it can be for the long-term unemployed to land a job in the first place. In research for the Federal Reserve Bank of Boston, Northeastern University economist Rand Ghayad sent nearly 5,000 mock applications in response to job postings. He found that résumés showing unemployment lasting more than six months were uniformly rejected — even when those applications listed significant work experience. In other words, Ghayad said, companies were more willing to hire people with little experience who were recently unemployed than they were to hire long-jobless candidates with relevant experience.
Ghayad said this dynamic creates what he called “the jobless trap,” in which those who are unemployed are increasingly likely to remain that way. He places the blame solely on the businesses doing (or not doing) the hiring.
“There’s no occupation where you lose your skills in one month, between six and seven,” he said. “I wouldn’t blame the unemployed people for 1 percent of what’s happening.”
<...>
Other economists have demonstrated just how difficult it can be for the long-term unemployed to land a job in the first place. In research for the Federal Reserve Bank of Boston, Northeastern University economist Rand Ghayad sent nearly 5,000 mock applications in response to job postings. He found that résumés showing unemployment lasting more than six months were uniformly rejected — even when those applications listed significant work experience. In other words, Ghayad said, companies were more willing to hire people with little experience who were recently unemployed than they were to hire long-jobless candidates with relevant experience.
Ghayad said this dynamic creates what he called “the jobless trap,” in which those who are unemployed are increasingly likely to remain that way. He places the blame solely on the businesses doing (or not doing) the hiring.
“There’s no occupation where you lose your skills in one month, between six and seven,” he said. “I wouldn’t blame the unemployed people for 1 percent of what’s happening.”
