Average Unemployment Duration Tops 27 Weeks, Long-Term Share Hits 27.6%

According to CNBC, the average period of unemployment exceeded 27 weeks in October, the longest outside the pandemic period since 2016, while about 2 million Americans had been jobless for at least 27 weeks. They made up 27.6% of all unemployed workers, the highest share since late 2021. Indeed senior economist Cory Stahle said the monthly data can fluctuate, but the longer-term trend is clear. The increase comes amid a low-hire, low-fire labor market, where employers are reluctant to lay off workers but are also adding few jobs. Federal Reserve Bank of Richmond researchers wrote earlier this year that extended unemployment may reduce the likelihood of finding work as skills and professional networks erode and employers view long jobless spells negatively. Most workers can claim unemployment benefits for no more than 26 weeks in a year. Other October labor data showed nonfarm payrolls increased by 165,000 and the unemployment rate edged down to 4.1%. September job openings exceeded economists’ expectations, while layoffs and discharges fell to their lowest volume in more than a year.