In recent weeks, Parker Taylor has reached a difficult milestone in his career.
The 29-year-old has been employed consistently since he was a teenager, first on a factory floor and more recently in pharmaceutical sales. But the St. Petersburg, Florida, resident hasn’t been able to find a new job since losing his job just before Thanksgiving in 2025.
Taylor is now one of more than 1.8 million Americans classified as long-term unemployed (defined by the government as having been unemployed for at least 27 weeks) in any given month this year. That number is up about 45% from 2019 and 55% from 2023, according to a CNBC analysis of Bureau of Labor Statistics data.
“Unless some catastrophic change occurs in my life, this situation cannot continue much longer,” Taylor said. “I go to sleep thinking that this period of my life could affect my long-term future, the future of my family, the future of my future children.”
Without steady income, Taylor’s retirement plans and long-term investment strategy came to a “sudden halt.” To make ends meet, he drastically cut back on everything from food to social experiences. Taylor said she applied for about 100 jobs and had several interviews to no avail.
At a macro level, the growing number of Americans in this boat raises red flags about the strength of the labor market and the overall economy. For long-term unemployed workers, the economic, mental, and family health impacts can be adversely affected, and the effects can linger even after re-employment.
“It tells you a lot about the health of the economy,” said Corey Stahl, an economist at job site Indeed. “This tells us how well the labor market is performing in terms of absorbing talent.”
“catastrophic” situation
According to the latest available U.S. government data, long-term unemployed people make up about one in four unemployed people. Friday’s nonfarm employment report will provide new information about the composition of the U.S. labor force. A report on job openings and private pay released this week came out better than economists expected.
According to a Boston Fed research report, the wages of long-term unemployed workers were about 32% lower after 10 years than those who were not unemployed. Those who were unemployed for a short period of time received a 9% cut over the same period.
Research also shows a possible link between long-term unemployment and depression. A Pew Research report found that long-term unemployed people are more than twice as likely to seek professional help for depression and other mental health issues than those unemployed for less than three months.
“Aside from the death of a family member or close friend, this is one of the most traumatic events people face,” said Carl Van Horn, director of the Heldrich Center for Workforce Development at Rutgers University. “This is a very serious health issue and it’s also an economic issue.”
Research also shows how unemployment, especially over long periods of time, can negatively impact families and communities.
Parental unemployment increases the likelihood of a child repeating a grade by about 15%, a research paper has found. A study of data from Wisconsin found that workers who lost their jobs in their prime years were less likely to attend social and community events. Areas with high proportions of long-term unemployed people have higher rates of crime and violence, the Urban Research Institute reported.
Job seekers at the City of Sunrise hiring booth during the Mega Job News USA South Florida Job Fair held at Amerant Bank Arena on April 30, 2026 in Sunrise, Florida.
Joe Radle | Getty Images
Ana Febres-Cordero said her mental health has worsened since she lost her social media job more than a year ago. The 29-year-old has stopped going out with friends to save money and is relying on her boyfriend to help pay for housing. The Chicago resident has taken up hobbies like walking her dog and coloring to get out of the house and maintain a routine.
“I don’t think people realize how much of an impact it has on an individual,” said Febres Cordero, who estimates he has completed more than 300 job applications. “It shatters your confidence.”
Lindsay Acker, who lives hundreds of miles away in Asbury Park, New Jersey, lost her job in the medical industry in September and is behind on her student loans and credit card debt. The 38-year-old said she moved to a Medicaid health plan because marketplace insurance was no longer affordable.
After her unemployment benefits end, she puts money into her retirement account to cover necessities. Acker said she has been putting off discussing family planning because she feels it is financially out of reach.
“I’m not the same person I was when I lost my job,” Acker said. “I lost my spark. I lost my happiness. I lost my ability to see joy.”
A “transformative” experience
Long-term unemployed people are no longer eligible to receive most unemployment benefits, which are typically capped at 26 weeks, said William Condon, a labor economist and senior fellow at the Urban Institute. Even if these workers are actively looking for jobs, they face bias from employers because of gaps in their resumes, he said.
According to Indeed’s Stahle, the rise in long-term unemployment is a characteristic of a “low employment, low layoff” labor market. Federal labor statistics show job openings and hiring rates have fallen from their pandemic-era peaks, indicating that job opportunities are drying up.
Stahle said the long-term unemployed group also includes new graduates who are struggling to land their first jobs. According to the New York Fed, the most recent unemployment rate for college graduates was 5.6%, higher than the overall average of 4.2%.
Stahle said if more people were unemployed for this long, spending would likely be curtailed and the national economy could suffer. Personal consumption accounts for about two-thirds of the U.S. gross domestic product.
Even for people like Deborah Yu who have re-entered the workforce, the stress of being out of work for so long still shows up in some degree.
The San Francisco Bay Area resident said she used to buy lunch without thinking during the workday, but now feels like it’s an unnecessary expense. She put off considering buying a home out of fear of having to make monthly mortgage payments if she lost her job again.
“This has been a transformative experience,” said Yu, who started his new job in March after being laid off in mid-2025. “I started thinking about money on a deeper level.”
