The ranks of the long-term unemployed — those out of work for 27 weeks or more — were 2.1 million in June, according to the Bureau of Labor Statistics. This stands at over a quarter of all unemployed people. While the figure continues to decrease, it remains a drag on the economy.

Added together with those who are “marginally attached” to the labor force, and the figure grows much larger:

The number of long-term unemployed (those jobless for 27 weeks or more) declined by 381,000 to 2.1 million in June. These individuals accounted for 25.8 percent of the unemployed. Over the past 12 months, the number of long-term unemployed has declined by 955,000.

Also:

In June, 1.9 million persons were marginally attached to the labor force, little changed from a year earlier. (The data are not seasonally adjusted.) These individuals were not in the labor force, wanted and were available for work, and had looked for a job sometime in the prior 12 months. They were not counted as unemployed because they had not searched for work in the 4 weeks preceding the survey.

Two disturbing things are likely by-products of the numbers of people in these groups. The first is obviously that they are not consumers at any meaningful level. As the U.S. economy runs on consumer spending, even a modest erosion of the consumer population affects gross domestic product.

Second, as people remain unemployed, in many cases, their skills erode, either abilities obtained in earlier jobs or their ability to gain new training. This in turn, makes them less attractive to potential employers.

And there is a final problem, the extent of which is hard to peg. It is suspected that people who have been out of work for longer periods are discriminated against by potential employers. If this is true, months of joblessness can turn into more months.

The civilian labor force in the United States is 157 million. In contrast, the number of long-term and marginally attached is small, but it still serves as a light boat anchor on the economy.

ALSO READ: The Best and Worst States to Be Unemployed

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.