US Long-Term Unemployment Hits 1.99 Million as May Payrolls Beat Forecasts by 87,000
Updated
Updated · 24/7 Wall St. · Jun 8
US Long-Term Unemployment Hits 1.99 Million as May Payrolls Beat Forecasts by 87,000
3 articles · Updated · 24/7 Wall St. · Jun 8
Summary
1.99 million Americans were unemployed for 27 weeks or longer in May, up 155,000 from April and the highest level since December 2021.
That rise came even as employers added 172,000 jobs in May, far above the 85,000 expected, underscoring a split between solid headline hiring and weaker labor-market undercurrents.
Long-term unemployment has climbed by 524,000 over the past year and reached 27.5% of all unemployed people, up from 18.5% a year earlier.
The mix fits a low-hire, low-fire market: companies are avoiding broad layoffs but hiring slowly enough that displaced workers are taking longer to find jobs.
For the Fed, the strong payroll number pushed rate-cut expectations further out, while the jump in long-term unemployment suggested labor-market momentum may be softer than the headline implies.
With 172,000 jobs added, why are more Americans stuck in long-term unemployment than at any time since 2021?
As the stock market soars, are foundational cracks in the labor market signaling a coming economic downturn?
If 'hidden' inflation is skewing official data, is the Federal Reserve's current strategy risking a recession?
May 2026 Labor Market: Headline Job Gains Hide Deepening Long-Term Unemployment and Participation Crisis
Overview
The May 2026 jobs report showed stronger-than-expected growth, with nonfarm payrolls adding many new jobs and the unemployment rate staying steady. This points to a robust employment picture and a stable labor force. Average hourly earnings continued to rise, reflecting ongoing wage increases. Job creation was led by the leisure and hospitality sector, driven by continued consumer spending and activity, while local government also saw significant employment gains. These trends highlight a labor market that remains resilient, with steady job growth and rising wages supporting overall economic stability.