More people are unemployed for more than 27 weeks, and the effects are long lasting

Urban Institute

The terrible rate of long-term unemployment is what makes the aftermath of the Great Recession crueler that past economic downturns. Long-term unemployment is defined as more than 27 weeks. As of 2012, 89,000 Marylanders were unemployed for at least 27 weeks. Prior to the Great Recession, in 2007, only 19,000 Marylanders had been looking for work that long.

Nationally, nearly 35 percent of unemployed persons have been out of work over 27 weeks (41 percent in Maryland). This compares to just 25 percent at the depth of the 1980 recession – the next worse instance since World War II.

The Urban Institute has published "27 Weeks and Counting,” an interactive feature about people facing long-term unemployment. It effectively combines data analysis with the stories of real people who have been unemployed for over six months. The report shows that loss of income isn't the only consequence of unemployment. Being out of work for a long time can lead to permanently lower wages and career setbacks, worse mental and physical health, and higher mortality rates. Workers' skills may erode while they're out of a job, and they may begin to lose touch with the business contacts that could help them find work.

The consequences of long-term unemployment spill over into families and harm whole communities. Kids whose parents are unemployed for a long time tend to perform worse in school than their peers with employed parents. High rates of long-term unemployment in communities can strain public services. Communities with a high concentration of long-term unemployed workers tend to have higher rates of crime and violence.

One way to fight long-term unemployment is with well-targeted training programs. This year, Governor O’Malley proposed and the legislature adopted an initiative called “EARN Maryland.” EARN Maryland is a new state-funded, competitive workforce development grant program that is industry-led with the goal of helping businesses cultivate the skilled workforce they need to compete.

MBTPI has long called for increased investment in employer-driven training programs, like EARN, to provide real opportunities to Maryland workers.