This Congressional Budget Office (CBO) study, which examines the state of the labor
market and a broad array of policy approaches designed to reduce unemployment, was
prepared at the request of the Ranking Member of the House Committee on Ways and
Means. In keeping with CBO’s mandate to provide objective, impartial analysis, this study
makes no recommendations.
Gregory Acs and William Carrington of CBO’s Health and Human Resources Division wrote
the study under the supervision of Linda Bilheimer. David Brauer and Benjamin Page con-
tributed significantly to the analysis. Christi Hawley Anthony, Molly Dahl, Wendy Edelberg,
Matt Goldberg, Heidi Golding, Michael Levine, Joyce ManchesteCompounding the problem of high
unemployment, the share of unemployed people looking
for work for more than six months—referred to as the
long-term unemployed—topped 40 percent in December
2009 for the first time since 1948, when such data began
to be collected; it has remained above that level ever
sincer, and Jonathan Schwabish
of CBO provided helpful comments on the report. Jimmy Jin provided valuable research and
production assistance.
Diana Furchtgott-Roth of the Manhattan Institute for Policy Research, Harry Holzer of
Georgetown University, and Betsey Stevenson of the University of Pennsylvania also reviewed
the report. The assistance of external reviewers implies no responsibility for the final product,
which rests solely with CBO.
Loretta Lettner edited the study. Maureen Costantino prepared the report for publication and
designed the cover. An electronic version is available on CBO’s Web site (
Congressional Budget Office - Home Page).
Douglas W. Elmendorf
Director
February 2012