How long before the unemployed find jobs or quit looking?
Downturn brings in difficult times, specially if one is kicked out of his office by his boss and he says “we are into cost cutting measures now”. A person is said to unemployed when he is willing to work, looking for work but not getting the work. There is a time period for which an unemployed looks for new employment and if he doesn’t get a job in that time period he finally quits and drops from the work force.
US Bureau of Labor Statistics findings show how people have stretched their time and are desperately looking for jobs for longer time before dropping out of work force.
The chart above shows that now unemployed waits for 20 week on an average before dropping from labor force. Graph is an representation of the fact that employment situation has never improved since downturn and people are forced to wait for longer time before they get their job.
As seen during 2001 tech bubble burst, there was fall in percentage of unemployed people who became employed and this fall continued till almost 2004 before it could start recovering. Current downturn is far more severe than that of 2001 and it seems if might take much more time before employment situation really start to stabilize in any sense. A close look at chart shows that percentage of people leaving the work force remains more or less same or with very little downslide but the percentage of people getting employment has dropped a lot. This means there are now lot more people who are looking for the job and who are not ready to quit looking for the job.