Economists: Long term unemployment may be 'new normal'

KANSAS CITY, Mo. - This Labor Day, a lot of people are still wondering, "Where are the jobs?" The forecast on the economy is starting to shift.

Economists say there is good news and bad news.

The Bureau of Labor Statistics shows Kansas City's unemployment rate remains steady, so no longer do we have more friends without jobs.

But economists project that the people still looking for work may be looking for a long time.

Heather Rama, the hiring manager at Waldo's Pizza, said no matter how you slice it, part of her job every single day is not easy.

Rama said she has to tell applicants at least ten times a day that they are not hiring.

She added that the number of people looking for work at Waldo's Pizza has significantly increased in the last few years.

However, she said there are fewer opportunities because employees are keeping their jobs longer than they would have just a few years ago.

"It is so risky to try to get something new and then if they go to another restaurant, there's no guarantee they'll even be open,” Rama said.

One of her customers, Brian Davidson, who is also a small business owner, agreed.

Davidson owns Kids 2 Leaders Martial Arts. He said politics, uncertainty about the economy and declining customers make him reluctant to hire anyone else.

"I'm working really hard to hold on to the ones I have,” he said. “We've needed the help but we're not hiring right now."

He said the uncertainty has even put plans of expanding a family on hold.

Economists said that fear will likely make long-term unemployment down the road the new normal.

The government reports almost 50 percent of those unemployed have been out of work for at least six months.

"It is part of the everyday life,” Chris Butler, a local economist, explained. “You never want to over hire, so employers start to change their outlook going forward. They might have previously thought in five years, we will have hired 100 more people. But now, they're starting to think that is not so wise.”

Without risk-taking, economists believe there will be little economic growth.

The Bureau of Labor Statistics showed the prospects of finding a job gets harder for the people who have been out of work the longest.