The number of Americans classified as long-term unemployed has climbed above 1.8 million on average this year, raising serious concerns about labor market health.
The government defines long-term unemployment as being jobless for at least 27 weeks, a threshold that more than one in four unemployed workers has now crossed.
That figure is up roughly 45% from 2019 and 55% from 2023, according to a CNBC analysis of Bureau of Labor Statistics data, signaling a troubling structural shift in the job market.
Parker Taylor, a 29-year-old from St. Petersburg, Florida, lost his medical sales job shortly before the 2025 Thanksgiving holiday and has been unable to find new work since.
Taylor said he has applied to around 100 jobs and completed multiple interviews without success, while significantly cutting back on food and social spending to make ends meet.
“This can’t go on much longer without some type of catastrophic change to my life,” Taylor said. “That this era of my life could affect my long-term future — my family’s future, my future children’s future — is something that I go to sleep thinking about.”
His retirement planning and long-term investing strategy has come to a “screeching halt” without a steady income to sustain those financial goals.
Cory Stahle, an economist at job site Indeed, said elevated long-term unemployment reveals deeper problems with how well the labor market is absorbing workers seeking new opportunities.
“It tells us a lot about economic health,” Stahle said. “It tells us about how good of a job the labor market is doing at absorbing people.”
Research from the Boston Federal Reserve found that long-term unemployed workers’ pay was approximately 32% lower after a decade compared to those who had not experienced job loss.
Workers unemployed for shorter periods still faced consequences, taking roughly a 9% pay cut over that same ten-year timeframe, illustrating how even brief unemployment carries financial penalties.
A Pew Research report found that the long-term unemployed were over two times more likely to seek professional help for depression or other mental health challenges compared to those jobless for under three months.
Carl Van Horn, director of the Heldrich Center for Workforce Development at Rutgers University, described the experience in stark human terms that go well beyond financial hardship.
“Other than the death of a family member or a close friend, this is one of the most devastating things that people face,” Van Horn said. “It’s a very serious health problem and an economic problem.”
Ana Febres-Cordero, a 29-year-old Chicago resident who lost her social media job over a year ago, said she has pulled back on outings and relies on her boyfriend to cover housing costs.
“I don’t think people might realize how much it affects the individual,” said Febres-Cordero, who estimates completing more than 300 job applications. “It breaks down your confidence.”
Lindsay Acker, a 38-year-old from Asbury Park, New Jersey, has fallen behind on student loan and credit card payments and dipped into her retirement account after her unemployment benefits ran out.
“I am not the same person I was when I lost my job,” Acker said. “I’ve lost my spark. I’ve lost my happiness. I’ve lost my ability to see joy.”
William Congdon, a labor economist and senior fellow at the Urban Institute, noted that most unemployment benefits are capped at 26 weeks, leaving long-term job seekers without support while also facing employer stigma over resume gaps.
Consumer spending accounts for roughly two-thirds of U.S. gross domestic product, meaning widespread prolonged unemployment poses a broader threat to national economic growth and stability.
Even workers who have returned to employment carry lasting behavioral changes, with San Francisco Bay Area resident Deborah Yu saying she now scrutinizes routine expenses and delayed house-buying out of fear of future job loss.
“It’s been a transformative experience,” said Yu, who began a new job in March after being laid off in mid-2025. “I think about money now on a deeper level.”
