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    A job is becoming a dim memory for many unemployed

    WASHINGTON (AP) — For more Americans, being out of work has become a semi-permanent condition.

    Nearly one-third of the unemployed — nearly 4.5 million people — have had no job for a year or more. That's a record high. Many are older workers who have found it especially hard to find jobs.

    And economists say their prospects won't brighten much even after the economy starts to strengthen and hiring picks up. Even if they can find a job, it will likely pay far less than their old ones did.

    The outlook is unlikely to improve on Friday, when the government issues its monthly jobs report. Economists predict it will show that employers added a net 56,000 jobs in September.

    That's far fewer than needed to reduce unemployment. The unemployment rate is expected to remain 9.1 percent for a third straight month.

    Federal Reserve Chairman Ben Bernanke last week called long-term unemployment a "national crisis" and said it should be one of Congress' top priorities.

    When people are out of work for a year or more, their skills often decline. Their professional networks shrink. Companies hesitate to hire them. The problem feeds on itself.

    "It's a serious threat," said Mark Zandi, chief economist at Moody's Analytics. "A growing proportion of the labor force is becoming disenfranchised."

    Long-term unemployment sets this recession and weak recovery apart from any other period since the Great Depression. Though the economy has endured "jobless recoveries" before, in no previous recovery has such a high proportion of the unemployed been out of work this long.

    Labor Department figures show that for roughly the past year and a half, one in three of the unemployed have been without a job for at least a year. That's more than double the previous peak after the 1981-82 recession.

    Businesses would have to start hiring much faster before a larger proportion of the long-term unemployed would find work. Many employers see them as riskier than other potential hires. Some might need additional training. Companies aren't likely to take such risks until the economy shows consistent strength.

    Brian Wedding, a roofing contractor based in Baton Rouge, La., acknowledges that he spends more time evaluating job applicants who have been unemployed for long periods.

    "A flag's going to come up, for sure," says Wedding, CEO of Jasper Contractors, which employs about 800 at nine locations nationwide. "We'll have to dig a little deeper into what's going on."

    Those who have been out of work for many months describe troubling experiences.

    Linda Evans, 59, a home health care worker in Washington, D.C., has struggled to find work since her last employer left the area three years ago. She applies for openings online and attends job fairs. But she's found it difficult even to get interviews.

    "I don't know if it's my age or what," she said. "I never expected to be in this situation. And I'm scared."

    Long-term unemployment affects the economy in key ways:

    — It lowers skill levels, making it harder to match the unemployed with available jobs. Harry Holzer, a Georgetown University economist, said that once hiring picks up, employers tend to complain that they can't find people with the new skills they need. Companies are already having trouble filling advanced manufacturing jobs, Holzer said.

    — More people rely on government benefits. Unemployment benefits were extended during the recession to a record 99 weeks in states with the highest unemployment rates. The number of people receiving food stamps topped 45 million in May. That's another record. Older workers unable to find jobs often draw their Social Security benefits earlier. Many also have health problems and end up on government disability programs.

    — The long-term unemployed who do find jobs again will likely do so at lower pay. A study by the Congressional Budget Office found that the long-term unemployed earn, on average, 20 percent less when they finally find work.

    Still, it's hard to predict the economic outcome because no one has seen such levels of long-term unemployment before, said Steven Davis, an economist at the University of Chicago.

    "We're in uncharted territory," he said. "Those people are going to have inferior outcomes in earnings and employment well beyond the current weakness in the labor market."

    During the recession, the proportion of the unemployed out of work for more than a year rose, as it typically does during a downturn. Yet even as the economy has modestly recovered, the figure has worsened.

    Several factors help explain why. With the economy still struggling just to grow, unemployment has stayed chronically high. The rate has been 9 percent or higher in every month but two since the recession ended in June 2009. That's the longest such stretch since World War II.

    Another factor is the aging of the workforce. The huge generation of 78 million baby boomers is nearing retirement. Though older workers are less likely to lose their jobs, when they do, they typically struggle more to find work again.

    That's because older workers frequently have skills specific to their former jobs, which they typically had held for decades.

    "When they get laid off, those skills are not worth as much to a new employer," said David Wyss, former chief economist at Standard & Poor's and a visiting fellow at Brown University.

    President Barack Obama last month proposed steps to try to aid the long-term unemployed. His proposals include a tax break for companies that hire them and a ban on discriminating against them in hiring. But some economists think more drastic action is needed.

    Brian Bethune, an economist at Amherst College, favors permanently reducing the Social Security tax, a portion of which employers must pay for each of their workers. Bethune would replace it with a sales tax.

    "If you want to attack (the problem), you have to do something dramatic," he said. "It cries out for some fairly significant change."

     

    503 comments

    • Sam  •  7 mths ago
      Wyss is a terrible economist. He and Bovino, who is still at S and P, have really bad analysis. But, what else can you expect from S and P.
    • NB  •  7 mths ago
      I can only say to AMERICA " charity starts at home". A sad and serious situation, all adding to some kind of economic depression quickly.
      Who will hire the JOBLESS now...? - CHINA..?
      • M 7 mths ago
        Why doesn't Obama take some of the $35,000 per plate campaign money and help out the people that really need it ???!!!
      • vote2012 7 mths ago
        hehehhehehehehehhhhhehhehhehehahahhahahahhahahaaaaaaaaaaaaaahaWhyyyyyyyyyyyyyyyyyyyyyyyyyyy? Thats hardly enought to buy one vote. It would purchas a lot of cool aid thats how Jim Jones helped his zommbies.
      • Rob Ricci 7 mths ago
        M above does not have a bad idea. If Obama did that, that would "buy" (and I don't mean that in a bad way) more votes than a TV ad.
    • nan  •  7 mths ago
      And for those with a job, they have to work very long hours so they can keep the job they have.
      • possum 7 mths ago
        what's new about that? You want to work very short hours, and be successful?
      • RoyS 7 mths ago
        she wants to not work at all and be paid by obama
      • P 7 mths ago
        How about work a reasonable amount, say 40 hours and be able to live a reasonable life on that. Kind of like work to live, not live to work.
    • Noneof B  •  7 mths ago
      Don't know whose fault it is that I lost my job, but I am one of those "older job seekers", that was out of work for exactly 598 days in a row (but who's counting?) and finally got one. Have had it for 7months and counting. Not the best job I've ever had, not the worst. There is hope. I just never lost it (hope that is, lost my mind several times...:-)....) which helped immensely. From the "For what it's worth" department.....
      • Yahoo user 7 mths ago
        Actually your comment is worth a lot. You obviously kept after it and didn't stop looking for a job no matter how long it took. Very admirable.
      • DyAnn 7 mths ago
        thanks for encouraging others.
      • Diana 7 mths ago
        Bless you hope you have bluer skies ahead (and greener)
    • Anthony S  •  7 mths ago
      I agree with Jon about not buying thingds made in china, but how do we do that when it is hard to find products made in america. If we were able to find products made here, they are too expensive for the average person.
      • Old Horse 7 mths ago
        Good point.
      • Big Man 7 mths ago
        People don't want to work for low pay but don't want to pay alot for products. Something has to give and it's called domestic production.
      • Alissa 7 mths ago
        bar code 0 and 09 are ameican and canadian made
    • Chris  •  7 mths ago
      My company hasn't hired anyone in years. If anyone quits they don't hire anyone to replace them.
      • Brian 7 mths ago
        You must be in the Army Chris
      • A Yahoo User 7 mths ago
        Don't try to tell that to a typical conservative, Chris. He will call you a lazy bum. Facts are just laziness and socialism!!
      • aron patmore 7 mths ago
        just say it's Bush's fault, seems to be the mantra.
    • Au  •  7 mths ago
      the number of jobs in which someone's skills would deteriorate to the point of needing major retraining is pitifully small. maybe in some bleeding edge technology sectors it's a concern, but that's the exception. this is just an excuse not to hire more experienced people, who often command a higher salary. the real fear of employer is, "i don't want to pay what you used to make. if i lowball you, you probably won't stick around very long. so i'm going to hire someone who is cheaper (and younger)." that's the reality.
    • Fuzzy Thinker  •  7 mths ago
      It is time to Plow the Vacant Lots. Allow community Vegetable Gardens. Working Folk will soon qualify for Food Stamps. This is the Second Great Depression.
    • Greg789  •  7 mths ago
      A functioning nation provides work opportunities for all its citizens, from dish washer to physicist. Meanwhile, in our country both parties are still giving tax breaks for outsourcing jobs. Both parties still refuse to make E-Verify mandatory. Both parties are still pushing for more NAFTA style trade agreements. Both parties still vote for huge numbers of guest visa workers. Both parties agreed to allow Mexican trucks and Mexican drivers to haul anyplace in the U.S. That will cause hundreds of thousands of American middle class truck drivers to lose their jobs. Both parties are owned by the multinationals. A 50 million man march on Washington is the only thing they might understand.
    • Brian  •  7 mths ago
      Steve Jobs, he was 2nd to HP as being the biggest chinese employer.
    • Old Horse  •  7 mths ago
      You think the housing bubble burst was bad? Wait until the student loan bubble bursts.
    • Summer  •  7 mths ago
      I would suggest to Linda Evans, 59, a health care worker who can't find a job in her field to look into in-home care for alzheimer's patients. My father-in-law is paying over $6000 a month for his wife to live in a healthcare facility. It is breaking his heart to be separated from her, but he is not able to care for all her needs at home. I think there are employment opportunities for health care workers or nurses who are willing to do in-home care for otherwise healthy alzheimer patients. If hope this inspires folks who are unemployed and experienced in the health care field to look into the posibility described herein. Personally, I think there's good employment opportunity here. Good luck.
    • DD  •  7 mths ago
      Was out for almost 3 years. Layed of at the beginning of the recession. 99 weeks of scraping by on unemployment, then even less. Finally landed a job, worst one I've ever had, but it's a job. Employers are definitely taking advantage of the situation...do whatever we say or we'll replace you in heartbeat mentality. OK, I'll bide my time, no loyalty received, none given.
    • c miller  •  7 mths ago
      Wouldn't it cool if everybody became Amish for 24 hours, like an episode of Twilight Zone or something. Bet we'd work together then. We'd have to.
    • Jock  •  7 mths ago
      There is no way to prevent age discrimination, just as there is no way to prevent discrimination against those with criminal records. The employer can always say, "The other person was just a little more qualified."
    • loveablecuddlyman  •  7 mths ago
      oh wow i just noticed my air compressor actually has made in usa forged into it maybe i should contact antique road show.but wait im 55 and havent had a job since 2010 and dont draw unemployment either,and jobs for 55 year olds are gone like forever.
    • Diatribe  •  7 mths ago
      People, I see no other alternative than to hit companies that outsource with massive, massive fines ... I'm not in favor of the backlash, but any other course of action is going to take years and years.
    • Boston02116  •  7 mths ago
      A dim memory? It's like trying to see a firefly on the moon.
    • H_preston  •  7 mths ago
      reducing the Social Security tax, a portion of which employers must pay for each of their workers. Bethune would replace it with a sales tax.......well that's one way to get rid of social security permanently. Our government already uses the social security fund as a private cookie jar and then stick a little IOU in it. How would that work as a sales tax, it just vanishes into the government pocket and winds up where exactly?
    • R E D O X  •  7 mths ago
      Outlaw Outsourcing ! or tax it to death !!!
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