US Long-Term Unemployment Falls to 1.8 Million as Workers Exit Labor Force
Updated
Updated · CNBC · Aug 7
US Long-Term Unemployment Falls to 1.8 Million as Workers Exit Labor Force
1 articles · Updated · CNBC · Aug 7
Summary
1.8 million Americans were unemployed for 27 weeks or more in July, down 64,000 from June, while the long-term share of all unemployed fell to 25.5% from 27.3%.
Economists said the drop reflects discouraged workers abandoning job searches rather than finding jobs, a pattern that also helped push the headline unemployment rate down to 4.1% from 4.2%.
Labor force participation fell to its lowest level since February 2021 as hiring stayed weak, with federal data showing the hiring rate hovering near its lowest since 2014 and layoffs still historically low.
26,000 jobs per month were added on average from August 2025 to July 2026, down from 66,000 the prior year and 142,000 the year before, with gains concentrated in areas such as healthcare.
That mix leaves job seekers facing longer spells without pay or benefits and can restrain broader economic growth by shrinking the pool of available workers.