IB Net Payout Yields Model

Mean Duration of Unemployment Soars Versus Unemploymnet Rate

Incredible example of how extending unemployment benefits just leads to people being unemployed longer. The official unemployment rate in the early '80's was higher then now, but the mean duration of unemployment is up 150%. Maybe Congress will figure this out this correlation some day!

Until the early '90s the percent unemployed basically matched the weeks the average person remained unemployed. Can't find the data, but I'd be willing to bet that's when our great government started extending the unemployed benefits during times of stress. According to this graph, this extension provides a disincentive to find work! Surprise, surprise!


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