A major new study warns that the US may face a future of " jobless recoveries " from economic recessions, amid a growing pattern of chronic unemployment.
The study from economists at the University of Texas at Austin and the University of California at Berkeley suggests that the US economy looks a lot more like 1980s-era Europe - slow to rebound and hire after a downturn. In their research, Olivier Coibion of Texas and Yuriy Gorodnichenko and Dmitri Koustas of Berkeley focused on what they describe as “the rising persistence of US unemployment.” The study found that unemployment figures stagnated for increasingly longer durations over the past three US recessions of 1990, 2001 and 2007. A few results showed up from their research, including the decline in social trust in America, meaning people are less likely to say they trust each other and society. Additionally, Americans are more likely to say it’s all right to claim government benefits, even if they don’t qualify for them. That change of view appears to be hurting the job market. “Social networks are a common way people find jobs, and the social isolation and distrust we observe are likely associated with a decline in these traditional networks,” the authors said in an e-mail interview. According to the Labor Department, unemployment rates rose in 18 states, with Nevada, Illinois, and Louisiana the hardest hit. Nevada’s rate currently remains at nine-point-five percent, while Illinois and Louisiana stand at nine-point-two percent and seven percent respectively. Only 29 states added more jobs, the fewest rate since March. Meanwhile, jobless figures remain unchanged in 15 other states.