Bernanke correctly upset about long-term unemployment a national crisis, but doesn't blame the right people for the problem

Bernanke is right that unemployment is a “national crisis." The 45 percent rate that he is concerned about has been true for a long time since March 2010. But he makes no mention of the role of very long term unemployment insurance in causing the problem. From the Washington Post:

Bernanke noted that about 45 percent of the unemployed have been out of work for at least six months.
“This is unheard of,” he said in a question-and-answer session after a speech in Cleveland. “This has never happened in the post-war period in the United States. They are losing the skills they had, they are losing their connections, their attachment to the labor force.”
He added: “The unemployment situation we have, the job situation, is really a national crisis.”
Bernanke said the government needs to provide support to help the long-term unemployed retrain for jobs and find work. And he suggested that Congress should take more responsibility.
Responding to a question, Bernanke said long-term unemployment, budgetary discipline and housing policy were the three most important areas where Congress could contribute to an economic recovery. . . .

One big problem for the long-term jobless is that their references aren't so usable.

“Employers are acting in their best interest” when they’re apprehensive about hiring someone with dated references, author Holland said.
“Their job is to reduce their risk of hiring the wrong person,” he added. “The applicant has to convince the potential employer they are the right applicant.” . . .

Here is a nice history of the length of long-term unemployment.



Blogger Megan Ryan said...

High level of unemployment it's a big problem for the economy. It's not okay if people are very poor and have no money. It will be right to organize some courses when they can get know job search tips and how to find a job. And of course, companies need to provide positions for those people.

12/19/2018 4:32 AM  

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