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Uses and Limitations

Long-term unemployment captures information on those who are unemployed for prolonged periods and thus suffer greater hardship.  The longer a worker has been unemployed, the lesser his chances are of finding a job as his skill level runs the risk of deteriorating, and employers are increasingly hesitant to employ him. 

Long-term unemployment is widely used as an indicator for structural unemployment, or unemployment arising from mismatch in job seekers and job openings available.