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What is behind the rise in long-term unemployment?

Author

Listed:
  • Daniel Aaronson
  • Bhashkar Mazumder
  • Shani Schechter

Abstract

This article analyzes what is behind the recent unprecedented rise in long-term unemployment and explains what this rise might imply for the economy going forward. In particular, the authors attribute the sharp increase in unemployment duration in 2009 to especially weak labor demand and, to a lesser degree, extensions in unemployment insurance benefits.

Suggested Citation

  • Daniel Aaronson & Bhashkar Mazumder & Shani Schechter, 2010. "What is behind the rise in long-term unemployment?," Economic Perspectives, Federal Reserve Bank of Chicago, vol. 34(Q II), pages 28-51.
    • Handle: RePEc:fip:fedhep:y:2010:i:qii:p:28-51:n:v.34no.2
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    References listed on IDEAS

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    Unemployment;

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