The American Enterprise Institute, a conservative think tank in Washington, testified at a Congressional hearing this week on the problem of long-term unemployment.
About 40 percent of the nation’s unemployed have been out of work more than six months, and there’s lots of evidence that employers are less likely to interview them.
Because this is such a problem — in the last 60 years, long term unemployment has not been this high — the think tank calls for more radical solutions than more federal training funding.
Among the suggestions in the testimony:
The federal government should hire them for short-term jobs
The government should help pay relocation costs so they can move to states where there’s more demand for workers
The government should provide tax subsidies to employers who hire the long-term unemployed (this was already in place for hiring any unemployed)
And companies should be allowed to hire new workers for free while they continue to collect unemployment, on an extended try-out.