I tend to believe that what is going on is a queueing process, where employers rank indi­vid­uals like they’re sit­ting in the queue, and they go with the short-​​term [unem­ployed],” says Rand Ghayad, a Ph.D. can­di­date in eco­nomics at North­eastern Uni­ver­sity and a vis­iting scholar at the Fed­eral Reserve Bank of Boston. “The only way they’re going to go back to the end of the queue is when they run out of short-​​term unem­ployed applicants.”

For a study pub­lished ear­lier this year, Ghayad sent out 4,800 resumes for 600 job open­ings. By varying the lengths of unem­ployed periods for his faux job-​​seekers, Ghayad found that many employers pre­ferred appli­cants with little to no expe­ri­ence, but with short unem­ployed periods, rather than with lots of expe­ri­ence and long job­less periods.

In light of his research, Ghayad feels that the answer is for the gov­ern­ment to work harder to boost employ­ment for everyone.

The only thing I would say should be done is for the gov­ern­ment and Fed­eral Reserve to create more job open­ings” via fiscal and mon­e­tary stim­ulus, Ghayad says.

Read the article at U.S. News →