U.S. Jobless Spells Average 27.1 Weeks as Long-Term Unemployment Rises

U.S. jobseekers spent an average 27.1 weeks out of work in October on a seasonally adjusted basis, the longest span outside the pandemic period since 2016, even as employers added jobs.

Employers added 165,000 nonfarm jobs, and the unemployment rate edged down to 4.1%. The average spell of unemployment stretched to nearly seven months, a measure of how long people are taking to return to work.

About 2 million people had been without work for at least 27 weeks, representing 27.6% of all unemployed workers. That share was the highest since late 2021. Workers unemployed for 27 weeks or more are considered long-term unemployed.

The duration matters because workers generally lose access to most or all government unemployment benefits after 26 weeks in a year. “Now, the average unemployed person takes longer to find a job than their benefits would last,” said Cory Stahle, senior economist at hiring platform Indeed.

Extended unemployment can deplete savings, weaken future earnings potential and harm mental health. A lengthy job search may also make reemployment harder if skills fade, professional networks shrink or employers view a long gap negatively. The growing share of long-term unemployed people can help explain why initial and continuing jobless claims have remained low.

The duration figures add another measure to TokenPost’s earlier coverage of October payroll growth and the low-hire, low-fire labor market.