Long-term unemployment tumbles in March as job market stays hot

cnbc.com:

The ranks of the long-term unemployed fell again in March, edging closer to pre-pandemic levels as the job market offers ample opportunity for workers.

Long-term unemployment is a period of joblessness that lasts 27 weeks or more (or, at least six months). It's generally a financially precarious period for households in which it's harder to find a job and unemployment benefits are unavailable.

The number of long-term unemployed declined by 274,000 in March, to 1.4 million, according to the Labor Department's monthly jobs report issued Friday.

In March 2021, the long-term jobless accounted for 43.2% of all unemployed individuals, a pandemic-era high and just shy of the all-time record 45.5%, which was set in April 2010 in the wake of the Great Recession.

By March 2022, the share had nearly halved to 23.9% and was approaching its pre-pandemic level of roughly 19% to 20%.

The improvement comes amid a labor market that has been particularly strong for workers.

Job openings (an indicator of employer demand for workers) are near record highs and layoffs near record lows as businesses aim to hold onto the workers they have.

Annual wage growth is higher than at any point in over 20 years, according to economists at job site Indeed. Employees, enticed by higher pay and ample opportunity, have been quitting their jobs at near-record levels.

«As the labor market continues to expand and more options are available, that helps workers who are traditionally the last to return to the workforce, which includes workers who are unemployed for long periods of time,» according to Daniel Zhao, a senior economist at career site Glassdoor.

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