For the first time in four weeks, less than 800,000 people filed new unemployment claims (those who have lost their jobs and now seek financial relief from either state or federal government) during the week ending October 17, 2020. Yet, the pre-COVID job market is slow to recover post the March 2020 financial tantrum, as the reduction can mean a shift to other assistance programs or dropping out of the workforce altogether since they’re no longer seeking employment.
Furthermore, continuing unemployment claims are steady and well-above pre-COVID disrupted economic circumstances, potentially indicating a stalled job market.
The number of people out of work for more than 27 weeks [or nearly 7 months] increased to 2.4 million in September, an increase of 32.5% from the previous month. [In addition], there are 4.9 million people who have been unemployed between 15 and 26 weeks.
Niv Elis, The Hill, October 7, 2020
Government relief for the unemployed is meant only to be a temporary stop-gap income measure until workers are either rehired or find new employment.
Therefore, there is risk that those who are still unemployed, yet no longer receiving assistance (continuing claims), could become chronically unemployed.
Workers who have been separated from their jobs for more than 6 months typically have a more difficult time getting back to work even once the economy improves.
Niv Elis, The Hill, October 7, 2020
Or taken this way:
Furthermore, permanent job losses (jobs that have disappeared from the marketplace) may disproportionately affect younger workers or the newest workers, like recent college grads, seeking to join the employment ranks, exacerbating growing generational wealth inequalities.
In such a challenging, competitive employment market, the young, one day seeking to be gainfully employed, would be prudent to discover and gain confidence in their own aptitude, which can provide the greatest chance to gain lasting employment and achieve a greater peace of mind, no matter how troubled the times.
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