Elevated long-term unemployment

Elevated long-term unemployment occurs when a significant portion of the unemployed have been out of work for an extended period, typically 12 months or more, and is driven by economic downturns, a mismatch between worker skills and available jobs, and increased uncertainty for businesses. This situation leads to negative outcomes, including declining worker skills, decreased social capital, and potential physical and mental health issues, as well as societal costs like reduced gross domestic product (GDP) and increased government expenses.