Thursday, March 10, 2011

Data on Longterm Unemployment Look Bad




These two slides show that the duration of unemployment during this downturn is well above the duration during recent downturns. They also show that the number of the long term unemployed is high relative to recent past. Since some studies have shown that the median duration of unemployment is much lower than the average duration, the implication is that the average duration level is driven by large numbers of long term unemployed. The policy issue is becoming how to to deal with the long-term unemployed.

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