Americans are facing an unprecedented economic situation where the average job seeker takes six months or longer to find employment, according to a report by Bloomberg. The extended search times are the longest the United States has seen since the mid-2010s, a period when the country was still recovering from the effects of the global financial crisis.
Two million residents in the United States have been left without a livelihood as they continue to search for work for 27 weeks or more. Long-term unemployment can have compounding effects on workers, often making it harder to secure employment the longer they remain out of the labor force.
Despite the prolonged difficulties for these job seekers, the national unemployment rate has remained steady at 4.1 percent. An unemployment rate near four percent is generally considered low by historical standards. In the US, the jobless rate only counts individuals who do not have a job, have actively looked for work in the prior four weeks, and are available for work.
Federal Reserve rate hikes
The leadership of the Federal Reserve is currently more concerned with curbing inflation than with the state of the labor market. The central bank operates under a dual mandate from Congress to promote maximum employment and stable prices. In September, the Federal Reserve raised interest rates for the first time since 2023 in an effort to bring inflation under control.
Higher interest rates generally cool the economy by making borrowing more expensive for businesses and consumers. When companies face higher costs for capital, they often reduce their spending on expansion and hiring, which leads to fewer job openings and a tighter market for applicants.
Interest rates are expected to be raised again in the near future. These anticipated hikes will likely further reduce the incentives for employers to open new job vacancies, extending the time it takes for unemployed Americans to find work.
Long term joblessness in Russia
Extended unemployment is also affecting other economies. It was previously reported that the number of citizens in Russia who have been unable to find work for over a year has grown by nearly one and a half times. In July of this year, 13.3 percent of unemployed Russians had been looking for a job for a year or more. In 2025, that figure stood at 9.7 percent.
