The Long-Term Unemployedand Unemployment Insurance:

Evidence from a Panel Study of WorkersWho Lost a Job During the Great Recession

Carl Van Horn, Ph.D.Professor and Director

John J. Heldrich Center for Workforce Developmentand Edward J. Bloustein School of Planning and Public Policy

November 4, 2011

Research brief available at:http://bit.ly/ryoBoA

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Heldrich Center Surveys of Unemployed and Reemployed Workers, 2009 to 2011

Four national random sample surveys of unemployed American workers, conducted by Knowledge Networks of Palo Alto, CA

Wave 1: August 2009: 1,202 respondents who had been unemployed at some point in the prior 12 months (between September 2008 and August 2009)

Wave 2: March 2010: 908 re-interviewed; 76% of the original sample

Wave 3: November 2010: 764 re-interviewed; 64% of the original sample

Wave 4: August 2011: 675 re-interviewed; 56% of the original sample

Panel Attrition: The 675 respondents surveyed in August 2011 constitute an almost perfectly representative sub-sample of the original group of 1,202 interviewed in August 2009

The full results, reports, interview protocols, and methodology for all four waves of interviews are available at www.heldrich.rutgers.edu

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Table 1: Panel Employment Status

August2011

November2010

March2010

August2009

Unemployed and looking 41% 54% 54% 76%

Jobless and looking 33% 43%

Part time, looking for full time 8% 11%Unemployed, not looking 17% 13% 13% 5%

Don't want a job 4%

Discouraged, out of labor market 6%

In school 4%

Doing volunteer work 3%

Employed 43% 34% 33% 19%

Full time 27% 26%

Self-employed (full time or part time) 6%

Part time 7% 8%

Part time, in school 3%

Total 101% 101% 100% 100%

Numbers of respondents (675) (764) (908) (1,202)

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Figure 1: Have you received unemployment benefits from the government at any time in

the past 12 months?

No76%

No30%

Yes70%

Yes25%

0%

25%

50%

75%

100%

Currently Employed Currently Unemployed

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Figure 2: Areas where respondents reduced spending so much that it made a difference in

family’s day-to-day life:

42%

44%

48%

52%

75%

76%

87%

0% 20% 40% 60% 80% 100%

Housing/home maintenace

Health care

Transportation

Food

Travel/vacations

Clothing

Entertainment

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UNEMPLOYED

Figure 3: How long have you been actively seeking employment?

10% 16%35%

50%15%

32%

29%18%

24%

22%47%

22% 23% 22%

7%12%

0%

25%

50%

75%

100%

Wave 1Aug-09

Wave 2Mar-10

Wave 3Nov-10

Wave 4Aug-11

2 or more years 1-2 years 7-12 months Less than 6 months

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LONG-TERM UNEMPLOYED

Table 2: Which of the following have you donesince becoming unemployed?

Long-term unemployed

(more than 2 years)Other

Unemployed

Sold some of your possessions to make ends meet 60% 40%Moved in with family or friends to save money 20% 18%Borrowed money from family or friends, other than adult children 60% 45%

Missed a mortgage payment 26% 19%

Taken a job you did not like 40% 27%Taken a job below your education or experience levels 36% 26%

Missed a credit card payment 28% 20%Forced to move to a different house or apartment 20% 10%

Increased credit card debt 31% 28%Used food stamps or received food from a nonprofit or religious organization 38% 32%Cut back on visits to the doctor or medical treatment 55% 42%

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Table 3: What have you recently done in your job search?

Did ReceiveDid NOT Receive

Sent in an application to a potential employer

Yesterday/Last Friday 32% 17%

Within 7 days 38% 42%

Within last month 22% 18%

Not in the last month 8% 24%Sent an email to a potential employer to inquire about a job

Yesterday/Last Friday 13% 16%

Within 7 days 49% 33%

Within last month 17% 15%

Not in the last month 21% 36%Called a potential employer to inquire about a job

Yesterday/Last Friday 15% 17%

Within 7 days 31% 28%

Within last month 29% 17%

Not in the last month 25% 38%

Unemployed

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Table 4: What have you recently done in your job search?

Did ReceiveDid NOT Receive

Used and online job board (like Monster, Hot Jobs, Career Builder), (like Craigslist), or online company job boards to look for a job

Yesterday/Last Friday 34% 29%

Within 7 days 34% 31%

Within last month 22% 11%

Not in the last month 9% 30%Looked at a newspaper classifieds jobs ads

Yesterday/Last Friday 44% 25%

Within 7 days 22% 40%

Within last month 18% 13%

Not in the last month 16% 23%Contacted a friend of family member about a job

Yesterday/Last Friday 26% 13%

Within 7 days 23% 37%

Within last month 15% 21%

Not in the last month 36% 30%

Number of respondents (117) (381)

Unemployed

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Figure 4: What have you done in the past 12 monthsto help you get a job?

0% 10% 20% 30% 40% 50% 60% 70% 80%

Other

Taken an education class useful for job hunting

Take a class or training for skills to get a new job

Went to a one-stop career center or governmentalagency for help

Attended a job fair

Looked for a job using internet boards or employes websites

Unemployed, did NOT receive UI Unemployed, did receive UITotal Unemployed, Wave 4 Aug-11

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EMPLOYED

Figure 5: How long were you actively seeking employment

before you found a job?

0%

10%

20%

30%

40%

50%

2 months orless

3 to 4months

5-6 months 7 months - 1year

1 year to 2years

More than 2years

Not sure

Employed, did receive UI Employed, did NOT receive UI Employed, exhaustees

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Table 5: Forced to take a cut in pay in order to findnew full-time employment

Did Receive Did NOT ReceiveEmployedExhaustees

Yes 59% 32% 64%

No 41% 69% 36%

Total 100% 101% 100%

Number of respondents (190) (86) (82)

Employed

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Table 6: Support for ideas considered by government officials to bring down high unemployment

Did ReceiveDid NOT Receive Did Receive

Did NOT Receive Exhaustees

Long-term education and training programs that help people change careers 86% 66% 92% 80% 87%Longer and higher benefits from Unemployment Insurance 64% 44% 90% 63% 75%

Have government create jobs for unemployed people 73% 49% 82% 72% 79%Require people to enter training programs in order to receive Unemploymeny Insurance 59% 65% 58% 58% 53%Give tax credits to businesses that hire new workers 76% 64% 77% 65% 74%Number of respondents (190) (86) (117) (381) (127)

Employed Unemployed

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Figure 6: Possible steps to improve the economyconsidered by policymakers in Washington

26% 22% 25% 25%21%

20% 25% 24% 27%

67% 55% 53% 52% 49%

12%0%

25%

50%

75%

100%

Cuttinggovernmentspending to

control the deficit

Creating jobsthrough directgovernment

spending

Cutting wagetaxes

Providing moreunemploymentinsurance forunemployed

workers

Spending onconstruction

projects, such asroads andhighways

Favor

No Opinion

Oppose

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Contact Information

Dr. Carl Van Horn

vanhorn@rutgers.edu

732.932.4100 x6305

www.heldrich.rutgers.edu