2008-01-22washingtonpost.com

An unusually large share of workers have been out a job for more than six months even as overall unemployment has remained low, a little-noted weakness in the labor market that analysts said threatens to intensify the impact of the unfolding economic downturn.

...

The problem is ensnaring a broader swath of workers than before. Once concentrated among manufacturing workers and those with little work history, education or skills, long-term unemployment is growing most rapidly among white-collar and college-educated workers with long work experience, studies have found, making the problem difficult for policymakers to address even as it grows more urgent.

Layoffs in the mortgage industry, and now financials, are not helping this. And just wait till defense contractors start with major layoffs in a year or two, as war/homeland insecurity spending fizzles. None of this will be good for foreclosures or the financial markets in general, as the ability of the people to keep the bubble inflated with their real earnings continues to diminish.



Comments: Be the first to add a comment

add a comment | go to forum thread