Effects of Long-Term Unemployment take both financial and emotional toll 

Bankruptcy

July 26, 2010

A new survey done by Pew Research Center shows that of those who have experienced unemployment for at least six months since December 2007 (when the recession began), 44% report that the recession has caused “major changes” in their lives.  The current average duration of unemployment is 25.5 weeks, which means half of the unemployed having been looking for work for six months or more.  While certain groups have experienced higher durations of unemployment (older workers, blue-collar, African-Americans), overall all workers have seen a significant increase in long-term unemployment during the recession. 

The impact of long term unemployment is not just financial either.  Nearly half of those surveyed who had been unemployed at least six months or more say that their joblessness has strained family relations, and 43% say they lost contact with close friends. 38% reported they have lost some self-respect and 43% felt that the recession would have a “big impact” on their ability to achieve their long term career goals.  7 out of 10 long term unemployed reported they either changed their career or job field or seriously thought about doing so, and of those who found work after 6 months of unemployment, about 29% say their new job is worse than the one they lost.  Overall adults who have been unemployed for six months or longer are significantly more pessimistic than the short-term unemployed about their chances of finding a job as good as they lost. 

Current economic forecasts show that the job market may take until 2014 to recover.