US Long-Term Unemployment Stays High as Monthly Job Gains Slow

Nearly two million Americans are classified as long‑term unemployed, meaning they have been out of work for 27 weeks or more. The share of long‑term unemployed rose to 27.3% of all unemployed in June, up 4 percentage points from a year earlier. Workers aged 25‑54, especially in white‑collar professions such as professional services, government, finance and information technology, are hardest hit.

At the same time, overall job growth in the United States has decelerated sharply. Average monthly non‑farm payroll gains fell from about 175,000 in 2023 to roughly 50,000 in 2024, with several months posting negative figures. Recent hires have outperformed expectations despite geopolitical tensions and higher gasoline prices, helped by Federal Reserve rate cuts, AI investment, and corporate earnings strength. The unemployment rate sits near 4.2%, indicating a mixed picture of labor‑market health.

These trends highlight persistent challenges for a sizable segment of the workforce while suggesting that broader economic momentum still supports job creation, albeit at a slower pace.