June’s employment report was disappointing. Though the national unemployment rate fell slightly\u201d\u201dit’s now at 9.5% from 9.7% in May\u201d\u201dthe report reveals deep structural problems that go beyond the number of those who remain without jobs.<\/p>\n
Almost half of unemployed Americans have been without a job for over six months. The average duration of unemployment, which hit a post-World War II record many months ago, continues to go up. Last month it clocked in at 35 weeks. Unemployment is particularly severe among the young: A quarter of Americans between 16 and 19 years old in the labor market are without a job.<\/p>\n
The longer it takes to understand and address these issues, the more likely the U.S. will get stuck in a protracted low growth\/high unemployment trap. In addition to considering the welfare cost of substantial joblessness, policy makers should keep in mind the following four facts….<\/p>\n