Long-Term Unemployment: A Growing Crisis in America (2025)

Imagine the heartbreak of pouring your heart into a career for years, only to find yourself sidelined for nearly two years, watching your savings dwindle while job doors slam shut one after another. That's the harsh reality hitting more Americans than ever, as long-term unemployment surges to levels we haven't seen since the darkest days of the pandemic. If you're wondering how this economic storm is brewing and what it means for everyday folks like you, stick around – because the stories and stats here might just change how you view the job market.

Reported by Jerod Dabney
October 15, 2025 / 9:09 PM EDT / CBS News

New York – In her downtime from volunteering at a bustling New York City animal shelter, 41-year-old Emily Groveman often finds herself cooped up in her modest one-bedroom apartment, tirelessly hunting for employment opportunities.

"The struggle has been absolutely overwhelming," Groveman shared with CBS News. "It's dragging on for close to two years now."

For nearly a full decade, she thrived in the hospitality sector, closely tied to the National Basketball Association (NBA). Think of all the exciting perks that came with the territory – complimentary tickets to exclusive events, behind-the-scenes tours of venues, and casual interactions with star athletes. As Groveman explained, "Those VIP experiences, from swanky parties to player meet-and-greets, all passed through my hands to make sure everything ran smoothly."

After that rewarding chapter, she stepped into a leadership role at a digital marketing agency, guiding a team for around six years. But in 2023, she made the tough call to leave, and since then, landing a new position has felt like an uphill battle with no end in sight. For more on this broader trend, check out CBS News' coverage of the employment landscape and the rise in prolonged joblessness (https://www.cbsnews.com/news/employment-job-market-surge-in-long-term-unemployed-workers-economy/).

Groveman has pulled out all the stops, from tapping into her circle of professional contacts, partnering with recruitment experts, to even creating short video highlights of her resume on platforms like LinkedIn. Despite these efforts, the results have been disheartening.

"The employment scene has turned downright savage over the past while," she noted, her voice carrying the weight of frustration.

Take one particularly grueling opportunity: she endured a marathon of 13 interviews, fielding questions from no fewer than 11 company representatives. "They were torn between me and another applicant," Groveman recounted. "In the end, they chose the other person, and it hit me hard – 'I just can't keep putting myself through this emotional rollercoaster.'"

As the no's kept coming, so did the mounting financial pressures, turning what was once a stable life into a scramble for survival.

"Starting in March, I've had no choice but to draw from my 401(k) savings plan – you know, that nest egg meant for retirement, like a personal investment account where your employer might match contributions to help build your future security," Groveman revealed. "... Now, it's becoming a monthly necessity just to cover the basics."

Data from the U.S. Labor Department paints a sobering picture: Come August, almost 2 million Americans were grappling with long-term unemployment, which experts define as being jobless for 27 weeks or longer – that's over half a year of uncertainty. This figure marks the peak since 2022, when the COVID-19 crisis upended the economy on a massive scale, forcing millions into remote work or worse, layoffs.

"The main driver behind this worsening trend in extended joblessness boils down to the swirling economic instability emanating from Washington," explained labor economist Teresa Ghilarducci, breaking it down for those new to these concepts: Economic uncertainty here refers to unpredictable policies and events that make businesses hesitant to expand or hire, like ripples from government decisions that affect everything from trade to federal operations.

And this is the part most people miss... Recent developments have only poured gasoline on the fire. For instance, a prolonged government shutdown (https://www.cbsnews.com/live-updates/government-shutdown-2025-latest-republicans-democrats-trump/) has disrupted federal services and employee paychecks, while a wave of tariffs – essentially taxes on imported goods – imposed by the Trump administration on countries worldwide have rattled industries like manufacturing (https://www.cbsnews.com/news/jobs-manufacturing-trump-tariffs-economy/) and even everyday items such as furniture, lumber, and kitchen fixtures (https://www.cbsnews.com/news/trump-tariffs-furniture-lumber-kitchen-cabinets/). To illustrate, picture how these tariffs could hike prices for building materials, squeezing small businesses and leading to fewer job openings in construction or retail. Early last September, initial claims for unemployment benefits spiked to around 263,000 – the steepest rise since October 2021, signaling a sharp uptick in layoffs (https://www.cbsnews.com/news/jobless-claims-today-unemployment-benefits-highest-since-2021/).

Ghilarducci doesn't sugarcoat the outlook: She predicts the job market won't bounce back in the near future. "If you're job hunting right now, brace for a tougher road ahead," she advised. "You'll be competing with a larger pool of candidates for the roles that interest you, and employers are growing increasingly cautious about bringing on new staff. It doesn't mean you should throw in the towel – persistence is key – but don't expect the pressure to let up anytime soon."

But here's where it gets controversial... Is this wave of unemployment purely a fallout from policy choices, or are deeper structural shifts in the economy – like automation and gig work – playing a bigger role? Some argue the tariffs protect American jobs, while others see them as barriers that stifle growth. What do you think?

For Groveman, the relentless setbacks have led to a profound pivot. She's decided to call it quits on the traditional job search. Come December, she'll relocate to a serene Buddhist temple in upstate New York, where she'll earn free room and board by assisting at a peaceful retreat center – a far cry from the corporate hustle, but a step toward stability.

"Anyone capable of contributing through work ought to have that chance," Groveman reflected passionately. "That's the essence of the American dream, right? You work hard, lift yourself up through sheer determination, and success follows. But lately, that promise feels broken – and it's leaving so many of us questioning the system."

Mary Cunningham (https://www.cbsnews.com/team/mary-cunningham/) contributed to this report.

In:
* Unemployment (https://www.cbsnews.com/tag/unemployment/)

So, readers, does Groveman's story resonate with your own experiences or those of people you know? Do you believe government policies like tariffs are helping or hurting the job market? Drop your thoughts in the comments below – agreement, disagreement, or your own take – and let's spark a real conversation about rebuilding that American dream.

Long-Term Unemployment: A Growing Crisis in America (2025)
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