Tuesday, July 26, 2011

Unemployed Are Unemployable

The New York Times has a column in their Business Day section entitled "The Help-Wanted Sign Comes With A Frustrating Asterisk." Written by Catherine Rampell, the article reports that many employers will only consider those who are currently employed or perhaps recently unemployed.

This means that the long-term unemployed, in their millions, are unattractive to many employers. Are there valid reasons to discriminate against the long-term unemployed? Unfortunately, the answer is yes, as the article explains.

Does this mean the long-term unemployed will never get jobs? In a weak labor market like the one we have now, yes. In a tight labor market like we'd have in boom times, no. In a tight labor market employers are willing to take risks, to take less attractive candidates.

As our economy stumbles along, I fear we must face the likelihood that many of our long-term unemployed will never again hold serious, career-type jobs with benefits. It is unclear how our economy will support these individuals without setting up a European-style dole, something we don't want to do.