US Unemployment Spell Tops 27 Weeks as 2 Million Remain Jobless Long Term
Updated
Updated · CNBC · Nov 6
US Unemployment Spell Tops 27 Weeks as 2 Million Remain Jobless Long Term
3 articles · Updated · CNBC · Nov 6
Summary
October data showed the average unemployed American was out of work for more than 27 weeks—nearly seven months—the longest stretch outside the pandemic since 2016.
About 2 million people had been jobless for at least 27 weeks, lifting the long-term unemployed share to 27.6% of all unemployed workers, the highest since late 2021.
Economists tied the trend to a low-hire, low-fire market: companies are avoiding layoffs but also holding back on new hiring, making reemployment slower even as headline labor data looks firm.
That mismatch is growing more painful because unemployment benefits typically run out after 26 weeks, leaving many workers searching longer than their coverage lasts.
The warning signs sit alongside stronger indicators—165,000 jobs added in October, a 4.1% unemployment rate, firmer job openings and quits—even as fresh cuts at Disney and a 5% head-count reduction at American Express cloud worker sentiment.