2.3 Million Live With Long-Term Unemployed Parents

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By Douglas A. McIntyre Published
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Long-term unemployment has become a deeper and deeper problem in the United States. Some evidence of that is the battle over extending federal government assistance to 1.3 million Americans through the Emergency Unemployment Compensation (EUC) program. As of the end of 2013, those benefits have been eliminated. Just as large a problem, if not larger, is the number of Americans who live with parents who have been unemployed for what the government described as long term — those who have not had work for more than 26 weeks.

According to the Urban Institute:

Children may suffer when their parents are out of work for a long time. To assess the number of children affected by long-term unemployment, we updated data from an earlier issue brief examining unemployment from a child’s perspective. The updated table shows that, in an average month in 2013, 2.3 million children were living with a parent who had been seeking work for 26 weeks or longer, or three times as many children as in in 2007.

The problem is greater in some states, where unemployment has been deeper and more persistent than in the rest of the country:

Every state has seen a dramatic increase in children affected by long-term unemployment over the past six years. The District of Columbia, Georgia, Illinois, and Rhode Island have particularly large shares of children living with parents who have been unemployed more than six months, according to data through November 2013.

The effects on the children are those that most people would expect:

Children are affected when their parents lose work, and the negative effects are likely to be higher when parents are out of work for extended periods. Our colleagues found that poverty tripled among long-term unemployed parents, rising from 12 percent before job loss to 35 percent during the period of unemployment. Other studies find that job loss can hurt children’s school performance, as observed in lower math scores, poorer school attendance, and higher risk of grade repetition. In addition, some studies find even longer-term effects: one study found lower rates of college attendance among low-income youth whose parents lost their jobs and another found lower annual earnings among boys whose fathers lost their jobs after plant closures.

As the jobless rate in the United States has dropped to 6.7% in December from the recession peak of 10.1%, the progress is unquestionable. Less obvious are the portions of the population who have made little or no progress. Among these are the ones described by the Urban Institute.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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