The Long-Term Unemployed Problem

With the employment numbers out this morning we have another look at the long-term unemployed problem. 120,000 new jobs added is far too little to make a dent in unemployment. More people not looking is the only reason the unemployment percentage went down to a whopping 8.2%. Fact is, there are still way too many people unemployed and most of them are long-term unemployed.

For many others, as things get better in the economy, things seem okay. In recruiting, things are generally pretty good. But a large population of unemployed people for a long period of time is a bad thing for everyone. It creates a class or group of people that are truly struggling. They can’t add to, support, or help drive the economy in any way. In fact, eventually a group like this becomes a big drag on the economy due to higher taxes or other means for social support programs that take money out of the system that could help drive the economy. A thriving economy benefits all. A depressed economy hurts all.

The solution? Somebody has to find a use for the people that are unemployed that will be profitable. This is the only thing that will work. A job and a hope for a better future is one of the most important things in a person’s life. Sufficient motivation to hire enough of those that are unemployed to make a difference will only come from the ability to see profits in those hires. At some point, they are cheap enough to hire and can do enough for some business to make a lot of profits.

Todd Kmiec
Todd Kmiec and Associates
todd@toddkmiec.com