More than 1.6 million Americans have been jobless for at least six months, up 50% since late 2022, despite the economy adding over two million jobs last year, Labor Department data shows.

The average job search now takes six months, primarily affecting high-paying sectors like tech, law, and media. While the 4.2% unemployment rate remains below pre-pandemic averages, job postings have dropped to one per unemployed worker from two in early 2022.

Software development, data science, and marketing roles are 20% below pre-pandemic levels, while healthcare and government sectors account for half of recent job creation. The number of Americans receiving unemployment benefits reached 1.8 million in late December, approaching post-pandemic highs, as wage growth declined to 4% from 6% during the early 2020s hiring peak.

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