Over 1.9M Americans have been unemployed long term

Long-term unemployment in the US is on the rise, signaling trouble for workers and the economy. 

In August, more than 1.9 million Americans had been out of work for six months or longer, more than double the total from early 2023. 

Economists say hitting six months often marks a turning point: savings run low, benefits end, and job seekers face mounting discouragement.

The overall unemployment rate remains near 4.3%, and there are now more jobless people than openings. Recent college graduates and younger workers face stiff competition for scarce entry-level positions.

Several workers say that they have applied to hundreds of jobs without success, while they continue to rely on dwindling savings and assistance.

Separate data released earlier this week showed that Americans’ confidence in the ability to find work has reached a record low. According to the survey by the Federal Reserve Bank of New York, people say there is a less than 45% chance that they will find work within three months if they are suddenly laid off from their current jobs—the lowest reading since the bank started collecting data 12 years ago.

Experts warn that long-term unemployment can erode skills and confidence, making reentry into the workforce increasingly difficult.