By CATEY HILL & JONNELLE MARTE
As the economy began> to recover this year, millions of unemployed Americans waited for hiring to pick up. It did but not as much or in the way that anyone hoped. The kinds of jobs that became available were different than what we've been used to. There were more contract jobs, more part-time positions, more temporary assignments. Lacking from the recovery? Steady, full-time work with benefits.
So begins the era of the endless job search. In 2010, as the U.S. experienced not only high unemployment, but also record-high long-term unemployment, more people looked for better jobs than ever before, and the hunt took longer. In November, 42% of unemployed Americans had been looking for work for six months or more, according the latest available figures from the Bureau of Labor Statistics. Among those with jobs, the number of people working part-time because they haven't been able to land full-time work rose 15% compared to last year. And this may not simply be part of the business cycle, says Chris Flinn, a professor of economics at New York University: "These trends are likely to continue into the foreseeable future."
Of course, hiring is a lagging indicator, so it's not a huge surprise that unemployment has remained high hitting 9.8% in November-- despite solid economic growth. But to explain its persistence deep into 2010, look to the changing demographics of the workforce. With retirement accounts decimated, many older workers have stayed in the workforce during this recession, freeing up fewer jobs for younger, less experienced workers. And, in survival mode, many companies adjusted to working with smaller staffs by giving employees more responsibilities, a trend still visible today, says Flinn. Labor productivity increased by 2.5% in the third quarter compared to the third quarter of 2009, and hours worked increased by 1.7%, according to BLS.
Even employers who are hiring aren't looking for full-time employees. The number of people who are employed in part-time jobs for economic reasons has increased by 21% since 2008, according to the BLS. Temp, part-time and contract work in almost every field is here to stay, says Charles Purdy, a senior editor at Monster + HotJobs. The reason: it's cheaper for the employers, who don't have to pay benefits, and can hire (and fire) a temp far more easily than they can a full-time employee.
These are big changes, and may persist long after the economy picks up, experts say. The Federal Reserve predicts unemployment will fall in 2011, but only to around 9% -- still a historically high rate. And long-term unemployment may be especially hard to cure, which means that for many, the job hunt never stops. Yes, the unemployed will keep looking, but so will part-time and temporary workers, as well as many who have taken on freelance and contract work. It's a vicious cycle: The longer you're out of work, the harder it is to get back into the work force. Even full-time and salaried employees have learned how tenuous job security really is. In short, if your LinkedIn profile wasn't current last year, it is now.
Meanwhile, expect to hear more stories like John Clouse's. After 20 years in the industry, the 49-year-old got laid off from his medical teaching job last year. When an extensive job search produced no leads, Clouse realized he needed to adapt -- and began positioning himself as a disaster medicine consultant. A year later, he's got a stream of contract work, but says, he "wouldn't mind a regular paycheck." No doubt, he's in good company.



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