(CNSNews.com) – The Organization for Economic Cooperation and Development, a international group of economists based in France, says the slow economic recovery and record long-term unemployment in the United States may lead to chronic “structural” unemployment – the type of unemployment that is always present and immune to periods of boom or bust.
OECD economists, in a new report, blamed two factors for the persistently-high, long-term unemployment in the U.S. — poorly designed government benefits and a poor economic recovery.
“The increased duration (of high unemployment) reflects the slow recovery and may also owe, in part, to the lengthened eligibility period for unemployment benefits,” the report said.
In other words, a lack of available jobs for those laid-off during the recession and extraordinarily generous government benefits combine to keep people out of the labor force and even encourage some to leave for good.
The group also called for reforms to federal disability assistance payments, citing the fact that many long-term unemployed have claimed to be disabled in order to receive further federal benefits. OECD criticized the federal government for allowing this to happen, saying that it could lead to greater long-term unemployment.
Read More at CNS News. By Matt Cover.
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Don't many employers REFUSE to hire those people who have been unemployed the longest? Isn't it true that some job applications say that the unemployed need not apply? Given this apparent fact, such discrimination against the unemployed would "encourage some (unemployed people) to leave (the labor force) for good". Therefore, this OECD guy is CLUELESS (as are most economists). Alas, the real reason for high employment is TOO MANY UNEMPLOYABLE PEOPLE. Look at it this way– we had 180 million Americans in 1960; now we have 310 million for the same land mass as we did 50 years ago. Our population growth rate is UNSUSTAINABLE– yet NO ONE dares mention the truth about our population. When will we WAKE UP and smell the sweat of the additional excess people that our nation can't handle?
Yes, most people prefer to live from one unemployment check to the next. That mere fraction of what your paycheck USED to look like is such a driving force. Then the loss of health benefits for your family is just too tempting to search for employment.
To know that your unemployment benefits will end and you will be left with no income to make the mortgage is enticing.
Who are they kidding?