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Thursday, November 01, 2012

'Little Federal Help for the Long-Term Unemployed'

Fiscal policymakers have dropped the ball on job creation, and it could turn out to be a costly error:

Little Federal Help for the Long-Term Unemployed, by Annie Lowrey and Catherine Rampell, NY Times: In the economy-focused presidential campaign, the two candidates and their teams have scarcely mentioned what economists describe as not just one of the labor market’s most pressing problems, but the entire country’s: long-term unemployment.
Nearly five million Americans out of work for more than six months are left to wonder what kind of help might be coming, as the Federal Reserve, the International Monetary Fund and a bipartisan swath of policy experts implore Washington to act — both to alleviate human misery and to ensure the strength of the economy. ...
On the agenda for the next Congress and the next president is ensuring that the unusually long spells of unemployment now afflicting jobless workers remain a temporary setback of the recession.
Economists warned that long-term unemployment could be transformed in the next few years into structural unemployment, meaning that the problem is not just too few jobs and too many job seekers, but a large group of workers who no longer match employers’ needs or are no longer considered employable. ...
In Washington, many politicians support measures for the long-term unemployed; few demand them...

    Posted by on Thursday, November 1, 2012 at 09:44 AM in Economics, Fiscal Policy, Unemployment | Permalink  Comments (9)


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