Unemployed and Struggling: The Hidden Cost of Job Loss

The job market is in rough waters, with more Americans facing prolonged periods without work. As of November, around 1.7 million people in the United States are categorized as “long-term unemployed,” which means they’ve been searching for a job for at least 27 weeks. That’s nearly half a million additional souls compared to last year.

Being out of work isn’t just a minor bump in the road; it’s a significant hurdle that grows more daunting the longer you’re in the job search.

Take Hilary Rosensteel, for instance. A single mom from Maryland, she’s been on the hunt for a full-time position for nearly a year. Initially, she was enthusiastic about securing a role in the nonprofit sector.

“I received some interest, but they were mostly from out of state. Looking back, maybe I should have taken one of those offers,” she reflects. But uprooting her family wasn’t an option, so she persevered. Yet, as life would have it, unforeseen expenses like roof repairs and dental bills pushed her job search to the back burner.

“Some weeks, I’ve thrown my hat in the ring for seven to ten jobs. Other weeks? Well, let’s just say I’ve got a big fat zero,” she admits. Now, she’s pivoting to deliver groceries for Instacart while desperately trying to reignite her job hunt.

“Maybe I don’t need to pen a novel for every cover letter. But what should I do?” she wonders, caught in the swirl of uncertainty.

The long stretch of unemployment can feel like an earthquake, shaking the very foundation of who you are, according to Victor Tan Chen, author of “Cut Loose: Jobless and Hopeless in an Unfair Economy.”

“Work is a huge part of our identity,” he explains. “When you lose that, you can spiral into an identity crisis, questioning your purpose and meaning in life.”

Chen warns that enduring long-term unemployment can have serious psychological repercussions, akin to experiencing a divorce or grieving a loss. There’s also the phenomenon of “unemployment scarring,” where employers may view you as “damaged goods” — if you’ve been out of work for an extended time, they might wonder why no one has snapped you up yet.

Moreover, the longer you’re sidelined, the more disconnected you become from valuable networking opportunities. Julia Pollak, chief economist at ZipRecruiter, points out the stigma that can come from being out of the workforce for too long.

“It can create a vicious cycle where the long-term unemployed find it increasingly difficult to re-enter the job market, leading many to just fall out altogether,” she adds.

This situation is not just detrimental for those affected; it’s bad news for the economy as a whole.