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The term long-term unemployed refers to people who remain unemployed for extended periods while actively seeking work. It is defined differently across countries. For example, in the United States, the long-term unemployed are those who meet the Current Population Survey definition of unemployed and whose unemployment has lasted for 27 continuous weeks or more. However, in Germany, this duration is defined as 12 months or longer.
The term hysteresis describes prolonged periods of high unemployment in the economy. When people face unemployment for months, this situation can have serious financial, emotional, and intergenerational consequences. Indeed, hysteresis can persist even after the economic conditions improve.
Prolonged unemployment often depletes savings and may lead to emotional stress.
When the unemployed individual is the sole breadwinner and the family does not have substantial savings, children may face serious consequences. Reduced household income may lead to disruptions in schooling in such situations.
Studies show that the longer workers are unemployed, the less likely they are to find work.
Also, many such workers are willing to accept even jobs with lower pay, simply to reenter the workforce.
The term long-term unemployed describes individuals who continue to be without work for a prolonged period while actively searching for employment. Th…
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