Data extracted on 10 Oct 2016 05:17 UTC (GMT) from OECD.Stat.
Long-term unemployment rates across the OECD
11 Jan 2016 Leave a comment
in business cycles, labour economics, labour supply, macroeconomics, unemployment Tags: long-term unemployment
% of unemployment lasting longer than 12 months in Scandinavia since 1976
16 Aug 2015 Leave a comment
in applied welfare economics, business cycles, constitutional political economy, economic history, job search and matching, labour economics, labour supply, macroeconomics, Public Choice, unemployment Tags: borders, deployment subsidies, economics of borders, equilibrium unemployment rate, Finland, labour market programs, long-term unemployment, maps, natural unemployment rate, Norway, Scandinavia, search and matching, Sweden, unemployment durations
As I recall, most unemployed have been unemployed longer than 12 months in Sweden have to go on a labour market program. When they returned to unemployment after the program, the clock starts again. They are deemed to be freshly unemployed rather than adding to the previous spell with an interlude on a make work program. This makes Swedish long-term unemployment data rather unintelligible.
Source: OECD StatExtract.
Finland was recovering from its worst depression since the 1930s and the early 1990s when its data on long-term unemployment started to be continuous. This makes Finnish unemployment data rather difficult to interpret. Norway’s data for the long-term unemployed goes up and down a bit too much to be trustworthy without a background policy narrative.
% of unemployment that is more than 12 months, USA, UK, Germany and France
14 Aug 2015 Leave a comment
in currency unions, Euro crisis, job search and matching, labour economics, labour supply, macroeconomics, unemployment Tags: British economy, equilibrium unemployment rate, France, Germany, long-term unemployment, natural unemployment rate, social insurance, unemployment duration, unemployment insurance, welfare state
As the British labour market and long-term unemployment was starting to get something like that in the USA, the USA started to have unemployment it was more like the European labour markets in terms of the number of long-term unemployed. Nothing much happened in Germany and France.
Source: OECD StatExtract.
New Zealand unemployment incidence by duration since 1986
10 Aug 2015 Leave a comment
in business cycles, human capital, job search and matching, labour economics, labour supply, macroeconomics, politics - New Zealand, unemployment Tags: equilibrium unemployment rate, hysteresis, long-term unemployment, natural unemployment rate, unemployment duration, unemployment rates
There has been bit of a wild ride in long-term unemployment in New Zealand. Long-term unemployment – longer than one year – ranging from just over 8% of unemployment in 1986 to nearly 40% in 1992 then down to 5% in 2008. Clearly the duration of unemployment in New Zealand is highly sensitive to the business cycle unlike the case in the USA or UK.
Source: OECD StatExtract.
This sensitivity of long-term unemployment to the business cycle does not bode well for the hypothesis of hysteresis where human capital depreciates the longer a jobseeker is out of employment. For this hypothesis to hold, there must be some enduring aspect of long-term unemployment rather than just going up and down with the business cycle rather noticeably.
The rival hypothesis to hysteresis is the long-term unemployed tend to be those who have a lot of trouble getting employment, which is why they end up been unemployed for a long time. Again in New Zealand, these less employable jobseekers appear to be able to find jobs quite easily when the labour market is good.
Hysteresis in practice, Delong-Summers Variety @delong @LHSummers http://t.co/urqxQBi6NE—
Roger E. A. Farmer (@farmerrf) July 23, 2015
Utopia, you are standing in it! 
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