Loading...

We are processing your information.

Please hold tight for a few seconds!

WE Secured
MORE THAN
$1 BILLION
IN Financing
For BUSINESS
OWNERS national business capital logo

Long-Term Unemployment Falls but Small Businesses Still Struggle With Hiring

Listen To This Article

Voiced by Amazon Polly

2 min read. November, 2021 – by Amanda D’Auria

According to the Bureau of Labor Statistics, long-term unemployment fell by 357,000 people last month. This decrease is largely thanks to an improving job market and robust public health measures. 

Roughly 32% of all Americans who are out of work are considered long-term unemployed, which means they’ve been out of work for more than 27 weeks. Other than the 2008 financial crisis, this is the first time these figures have exceeded 30% since World War II. 

small businesses hiring

Recent job report shows market gains

In October, 2.3 million people were long-term unemployed and had been out of work for over six months. This lapse has caused financial difficulties for many households, especially since federal unemployment benefits ended after Labor Day.

But the recent report from the Bureau of Labor Statistics indicated this trend might be turning around. Total unemployment is at 4.6%, and it continues to trend down month over month. At the peak in March 2021, long-term unemployment reached 43.4%.

In addition, the U.S. added 531,000 new jobs last month, with the most significant gains happening in the leisure and hospitality sectors. These industries also experienced the largest losses when the pandemic began. 

Restaurants added 119,000 new employees, and hotels hired 23,000 workers. Manufacturing and professional and business services also saw significant gains last month. 

Wages also increased in October as many employers have increased compensation to attract new employees. Over the past year, the average hourly earnings have increased by 4.9%. 

According to Nick Bunker, economic research director at the Indeed Hiring Lab, all of these factors indicate the labor market is on the road to recovery. “We’re actually seeing employers with very strong demand hiring workers — maybe not at the pace they’d love, but they are making hires.”

Increased vaccine access for children between the ages of 5 and 11 could also help job growth increase. If job growth continues to increase, long-term unemployment numbers should continue to fall. 

Small businesses continue to struggle with hiring

Despite the recent job gains, the labor force participation rate stayed stuck at 61.6%, which is where it’s been for most of the year. This figure indicates that while jobs are available, millions of workers are waiting to return to work.   

Many small businesses have struggled to hire for the majority of 2021. According to a Bloomberg report, 42% of companies have positions they are unable to fill. 

If you’ve struggled to fill specific positions, it may be helpful to revise your job posting. Poorly worded job postings can be a significant barrier for potential employees.

And many businesses have been offering hiring bonuses to attract new workers. Taking out a small business loan or line of credit can help you fund this one-time expense. 

Last Updated on November 12, 2021

National Business Capital is the top FinTech marketplace offering small business loans and financing. Harnessing the power of leading technology and smart people, we’ve streamlined the application process to secure over $1 Billion in financing for business owners nationwide.

Our Business Financing Experts work within our 75+ Lender platform to match you with the right option. Easily access the best low-interest SBA loans, short and long-term loans, business lines of credit and equipment financing all in one place.

We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!

About the Author, Amanda D'Auria

Amanda is the Marketing Coordinator for National Business Capital. She’s a graduate of Ziklin School of Business at CUNY Baruch College and holds a B.A. in Advertising, Marketing, and Communications. Amanda has extensive experience creating content, directing outreach campaigns, and managing operations. She is passionate about small business and helping entrepreneurs reach new heights.

https://www.linkedin.com/in/amanda-dauria/


Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advise from National Business Capital and the author. Do no rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely in this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there maybe errors, omissions, or mistakes.