Unemployment is never a good thing, but there is more to the story than the simple tally of unemployed people in a given month. One way of better understanding unemployment is by looking at how long spells of joblessness last. Most people could experience a short spell of unemployment and still manage their household affairs. But few of us could lose several months of income without falling behind on our mortgage or other payments.
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Source: Indiana Department of Workforce Development
 
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Short spells of unemployment are a regular part of many peoples’ work lives. For example, many factories have an annual shutdown period when major equipment is repaired and replaced. The workers are laid off, but they knew it would happen and they know they will be recalled in a week or two. Many construction workers also are idle during the winter months, but they can plan for those times, knowing they will return to their jobs in the spring. These brief spells of unemployment are normal for the industries.
The chart shows that most spells of unemployment in Indianapolis are brief. Nearly half of all spells were shorter than 10 weeks – and most were probably much shorter than that. These numbers are based on unemployment insurance claims filed with the Indiana Department of Workforce Development for 2006. Nationwide, 46.4 percent of unemployment spells end in less than five weeks, and only 27.7 percent last longer than 15 weeks.1
Economists’ research suggests that the duration of unemployment is getting longer over time. The disparity of wages available to workers with similar skills is much greater than it was 20 or more years ago, and experts say this encourages workers to take longer to consider the decision to return to work. If there is a chance that a more lucrative offer will come along soon, it makes sense for the worker to keep waiting.2
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