Despite the United States being in the boom phase of the Federal Reserve business cycle, many workers are still unable to find work. And when they can’t find employment opportunities, they simply exit the labor force.
According to a new Harris Poll released on Wednesday, close to half (43 percent) of unemployed Americans have quit looking for work. It’s even more dire for those who have been out of work for a long period of time. The survey found that 59 percent of Americans who haven’t had a job for at least two years have stopped looking for one.
Meanwhile, 51 percent say they haven’t had a job interview in two years. The paucity of employment could also be blamed on the workers themselves as they report spending an average of just 12 hours a week applying to job advertisements.
The biggest share in the unemployment numbers is found in the millennial demographic: 18 to 29. They account for one-third of unemployment. Those who are between 30 and 39 years of age maintain a 20 percent share of the jobless rate.
A former Federal Reserve official and now CEO of a job placement service called the figures “frightening.”
“This is a tale of two economies. Those with skills and jobs are seeing a slow but steady recovery from the days of the Great Recession. But far too many are still being left behind, a fact often masked by a declining unemployment rate and a low labor force participation rate,” said Bob Funk, CEO of Express and a former chairman of the Federal Reserve Bank of Kansas City, in a statement.
“It’s frightening to see this many people who could work say they have given up. The country can’t afford to let this many people fall behind. We clearly also need to equip people with the skills required for the jobs that are available.”
The results of this new survey come as the labor force participation rate reached its lowest level since 1977: 62.6 percent.
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