WASHINGTON — Long-term unemployment in the United States rose over the past year even as the economy continued to add jobs, according to government data released this month.
The Bureau of Labor Statistics reported that the number of long-term unemployed — those jobless for 27 weeks or more — stood at about 2.0 million in May, little changed from the previous month but up by 524,000 from a year earlier. The long-term unemployed accounted for 27.5 percent of all unemployed people, up from 20.4 percent a year ago.
Nonfarm payrolls increased by 172,000 in May, exceeding economists' expectations, while the overall unemployment rate held steady at 4.3 percent, the BLS said in its June 5 report. Job gains were concentrated in sectors such as health care, leisure and hospitality, and government.
The rise in long-term joblessness comes as the labor market shows signs of cooling. The share of unemployed workers out of work for extended periods has increased steadily, with the figure averaging more than 1.8 million per month this year, according to analyses of BLS data. That represents roughly a 45 percent increase from 2019 levels.
Economists have pointed to several factors, including slower hiring rates outside a few resilient sectors and challenges for workers transitioning from previous roles. Private-sector hiring has been more modest in recent months, with some reports indicating flat growth in many industries when excluding health care and social assistance.
“Long-term unemployment has been rising, even in the midst of impressive monthly job gains,” said an economist familiar with the data, who spoke on condition of anonymity to discuss ongoing trends.
The median duration of unemployment stood at about 11.6 weeks recently, while broader measures of labor underutilization, including discouraged workers, have also edged higher. Labor force participation has remained relatively stable near 62 percent.
Administration officials have highlighted the continued job creation as evidence of resilience. “The economy keeps adding jobs,” a White House spokesperson said in response to the latest figures. Critics, including some labor advocates, have called for greater attention to workers facing prolonged job searches.
As of mid-June, markets and analysts were awaiting the June employment report, scheduled for early July. Details on regional variations and demographic breakdowns of long-term unemployment remain under review in forthcoming data releases.
