U.S. Long-Term Unemployment Hits 27 Weeks in October, Highest Since 2016
The average duration of unemployment for U.S. jobless workers exceeded 27 weeks in October, according to the Bureau of Labor Statistics (BLS). This means the typical unemployed person searched for a job for nearly seven months, marking the longest period since 2016 outside the pandemic. Approximately 2 million Americans have been unemployed for at least 27 weeks, representing 27.6% of all unemployed workers, the highest share since late 2021. Despite this rise in long-term unemployment, the broader labor market remains strong. Nonfarm payrolls increased by 165,000 jobs in October, exceeding economists' expectations. The unemployment rate slightly decreased to 4.1%, and September job openings were higher than forecasted. The number of workers quitting their jobs also rose to levels not seen since March 2025, while layoffs reached their lowest recorded level. This paradox reflects a "low-hire, low-fire" labor market where companies are reluctant to lay off employees but are also cautious about hiring new ones. Long-term unemployed individuals often face challenges such as diminishing skills and reduced chances of reemployment. Since unemployment benefits typically last up to 26 weeks, many jobseekers now face periods of unemployment longer than their benefits cover. For investors, this indicates a labor market with stable headline employment but underlying weaknesses that may affect consumer spending and economic growth over time.
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