The Center's work on 'Unemployment' Issues


Today’s Jobs Report in Pictures

September 5, 2014 at 9:39 am

Today’s disappointing jobs report, while perhaps only a temporary blip in an ongoing labor market recovery, is nevertheless a sober reminder of how devastating the Great Recession and subsequent prolonged jobs slump has been for American workers.  In particular, the share of the population with a job, which plunged to low levels not seen since the early 1980s, has since risen only modestly even though we now are more than five years into the recovery.  In addition, the share of the labor force that is working fewer hours than it would like remains elevated, and unusually high long-term unemployment persists.

Click here for my full statement with further analysis.

Share of population with a job remains near recession levels

Long-term unemployment

Monthly job growth

Job losses were particularly high

Unemployment rate

Today’s Jobs Report in Pictures

August 1, 2014 at 10:02 am

Today’s solid jobs report shows a labor market that is moving in the right direction but still has a ways to go before everyone who would like to be working has a reasonable chance of finding a suitable job.  In particular, Congress dealt the long-term unemployed a harsh blow when it allowed federal emergency jobless benefits to expire prematurely at the end of last year.  Seven months later, long-term unemployment remains higher than when any of the previous seven emergency unemployment programs expired after previous recessions.  In addition, the share of the population with a job remains well below where it was at the start of the recession.

Click here for my full statement with further analysis.

Where Things Stand for the Unemployed

July 31, 2014 at 10:40 am

With the July jobs report due out tomorrow, we’ve updated our overview of unemployment insurance and our backgrounder on how many weeks of benefits are available across the country.

Workers in most states are eligible for up to 26 weeks of benefits from the regular state-funded unemployment compensation program, although eight states provide fewer weeks and two provide more.  Emergency Unemployment Compensation, a temporary federal program that provided additional weeks of benefits to workers who exhausted their regular state benefits before finding a job, expired at the end of 2013 and efforts to revive it have been unsuccessful so far.

Bernstein on Five Years of Economic Recovery

July 15, 2014 at 3:22 pm

CBPP Senior Fellow Jared Bernstein testified today before the Joint Economic Committee on the progress that has been made in repairing the U.S. economy over the first five years of the recovery from the Great Recession.

Bernstein explained:

When markets fail as massively as they did in the late 2000s, quick and forceful action clearly helps offset the damage.  But to stop at stabilization, instead of rebuilding jobs and incomes that were lost over the downturn is a serious policy mistake, one that has proven to be extremely costly to working families. . . . [T]here is time to build on the recent momentum we’ve seen, particularly in the job market.

Bernstein pointed out that while there are many positive attributes to the current recovery, especially in relation to the depth of the previous recession, it is clearly not yet reaching everyone:

  • Thanks in part to countercyclical policies legislated by Congress in 2009, along with aggressive monetary policy by the Federal Reserve, significant progress has been made in repairing the damage done by the uniquely deep recession that began in late 2007.
  • These gains, while incomplete, are evident in the job market, particularly in the recent acceleration in job growth and decline in unemployment.  After 52 consecutive months of net private sector job growth, non-government employment is up 9.7 million jobs since early 2010.
  • Moreover, employment growth has accelerated in recent months.  Payrolls added 1.4 million jobs in the first half of this year, their strongest six-month growth period since late 1999.

  • Un- and underemployment are both down significantly over the recovery, as are other slack metrics that rose sharply in the downturn, including long-term unemployment and involuntary part-time work.  While part of the decline in unemployment was due to labor force exits, this negative trend has also stabilized in recent months.
  • Private payrolls grew about 3 percent faster over the first five years of this recovery compared to the prior recovery, despite the fact that the recession that preceded this expansion was much deeper in terms of lost output and much longer lasting than the downturn that preceded the 2000s expansion.  The private sector added 3.4 million more jobs in the first five years of this recovery than were added in the last one.
  • Yet, slack remains in the job market and wage growth has generally not yet accelerated; real median household income, after falling sharply by around 10 percent in the downturn, is up about 3 percent over the past few years, largely due to more work at flat real earnings.  Corporate profitability and financial market returns, on the other hand, have more than recovered their losses.

Bernstein warned that policymakers cannot stop at stabilization. To prolong and strengthen the recovery, he recommended investing in infrastructure and increasing the federal minimum wage.

Click here for Bernstein’s full testimony.

Today’s Jobs Report in Pictures

July 3, 2014 at 11:28 am

Today’s jobs report contains encouraging signs that the labor market is healing but also reminders that it remains far from fully healed.  Payroll employment jumped by 288,000 in June and the unemployment rate fell to 6.1 percent.  While employment increased sharply and unemployment fell, there was little net growth in the labor force, leaving the percentage of people with a job well below where it was at the start of the Great Recession.  Nearly a third of the unemployed have been looking for work for 27 weeks or longer and encounter more re-employment obstacles than the typical jobseeker.  That’s why Congress should act immediately to restore emergency federal unemployment insurance.

Employment bar chart

Unprecedented job losses

Unemployment rate

Epop

Long-term unemployed