Though the economy of the United States has improved, people laid off more than 5 years ago are still unemployed , a new study finds.
The study was conducted by researchers from Rutgers, the State University of New Jersey. For the study, researchers surveyed 1,153 Americans, including 394 unemployed looking for work, 389 people unemployed for more than six months or who were unemployed for a period of more than six months at some point in the last five years, and 463 individuals who currently had jobs.
The research looked in to the long term effects of the Great Recession on the unemployed even after the economy showed improvement from 2009.
Researchers found that about 7 among every 10 long-term unemployed people said they had less in savings and income now than they did five years ago. Also, 8 in every 10 long-term unemployed participants said that their personal financial situation was either fair or poor. Researchers also noted that more than six in 10 unemployed and long-term unemployed said they experienced stress in family relationships and close friendships during their time without a job.
What's surprising is that about 55 percent of long-term unemployed participants said that they would need to retire later than planned because of the recession, while 5 percent felt that the weak economy may force them into early retirement. Nearly half of the long-term unemployed noted that it will take three to 10 years for their families to recover financially. Another one in five stated it will take longer than that or that they will never recover.
"While the worst effects of the Great Recession are over for most Americans, the brutal realities of diminished living standards endure for the three million American workers who remain jobless years after they were laid off," said Professor Carl Van Horn, Heldrich Center Director, who co-authored the study with Professor Cliff Zukin of Rutgers' Bloustein School of Planning and Public Policy, in a press statement. "These long-term unemployed workers have been left behind to fend for themselves as they struggle to pull their lives back together."
Earlier this month, a Census report also noted that despite the economy of the country improving, wages had not .
"This is the primary economic and policy puzzle facing policymakers right now: Why have wages remained so low in the face of an improving economy?" Joe Brusuelas, chief economist at McGladrey, a tax and accounting firm, explained to The Associated Press.
Previous studies have found that unemployment due to recession increases a person's risk of death. However, more comprehensive researches have highlighted contradictory findings, stating that recession actually decreases mortality rates.
