he Bureau of Labor and Statistics, U.S. Department of Labor, reported that as of September 2014, more than 3 million Americans (of all ages, ethnicities, geographies, industries and education and experience levels) were long-term unemployed — actively seeking work for more than 27 weeks without success. One of the worst legacies of the Great Recession, long-term unemployment is the defining employment challenge of our post-recession economy. More than 300 leading companies, including Deloitte and 20 members of the Fortune 50, have signed on to the White House’s Best Practices for Recruiting and Hiring the Long-Term Unemployed. These companies have committed to addressing this issue not only because it’s the “right thing to do,” but because it also makes business sense. "Deloitte is committed to helping tackle the long-term unemployment challenge by providing job seekers, employers and community leaders with resources to connect dedicated workers with open talent needs and strengthen America's workforce,” said Jim Moffatt, CEO Deloitte Consulting LLP. Hiring the long-term unemployed: Providing a significant competitive advantage for businesses and helping to strengthen the U.S. economy For more information, visit https://www.deloitte.com/view/en_US/us/About/social-impact/540aa1db85f58410VgnVCM3000003456f70aRCRD.htm

1. TAPPING INTO A FREQUENTLY
OVERLOOKED TALENT POOL
A Business Case for Hiring the Long-Term Unemployed

2. Usage guidelines
These materials are intended for use in educating your organization on business reasons for hiring the
long-term unemployed (LTU). They provide rationales for how hiring the LTU can provide a significant
competitive advantage. Below are some suggestions for use:
Considering and hiring the LTU starts at the top. Use this business case to educate organizational
leadership (i.e. CHRO, CFO, etc.) on the LTU issues and business drivers for focusing on this often
overlooked talent pool.
Share these materials with Talent leadership and staff to align on business and talent strategy for hiring
the LTU. Encourage your Talent and HR staff to leverage this business case and communicate the
organization’s commitment to hiring the LTU, i.e. discussing in company communication channels and in
meetings.
Print hard copies, email electronic versions, or post on your internal website so organizational leaders and
staff can reference the business case in the future.

3. Actively recruiting and hiring the Long-Term Unemployed (LTU) makes
business sense
Hiring the LTU can provide a significant competitive advantage for businesses and help strengthen the U.S.
economy.
The LTU Issue
Business Drivers for Hiring LTU
Increases access to
quality talent
Builds your brand
Reduces recruiting
costs
3.0M
American LTU have been job
searching for 27 weeks or more 2
Average callback rate
for LTU are
45%
Lower than the recently
unemployed 1
LTU with relevant experience are
1/2
as likely to receive an interview
callback than the recently unemployed
with NO relevant experience 3
FACT: Studies suggest companies
hiring LTU experience a more
reliable and loyal workforce as
well as higher retention rates 4
FACT: 92% of consumers would
purchase products with a social or
environmental benefit 5
FACT: Working with
intermediaries can help reduce
your recruiting costs 6

4. The Long-Term Unemployment (LTU) issue in the U.S.
According to leading economists, the current high level of LTU can result in lasting damage on the U.S.
economy.
SKILLS DETERIORATION, AN INCREASE IN STRUCTURAL UNEMPLOYMENT, AND LOWER LABOR FORCE
PARTICIPATION ARE POTENTIAL CONSEQUENCES OF THE HIGH LTU RATE
3.0M(job searching for 27 or more weeks) LTU individuals in the U.S.1
27% 24.5%
THE LONG-TERM UNEMPLOYED FACE SIGNIFICANT
DISADVANTAGES (I.E. STIGMA) SIMPLY BECAUSE
OF THE GAP IN EMPLOYMENT
LTU rate remains 2.5 times higher
than the pre-recession average
Account for 32.8% of the
unemployed
Long-term
unemployment
affects Americans of
all ages, ethnicities,
geographies,
industries, education,
and experience
levels.
of LTU have post-secondary
degrees
of STU have post-secondary
degrees
Apply to
Apply to
3.5 TIMES
more jobs than recently
unemployed job seekers 2
45%
lower callbacks
for interviews 2
Those who are unemployed for 7
months with relevant experience
are
1/2
As likely to receive interview callbacks
than those who are unemployed for 1
month with
no relevant experience3

5. Business drivers for considering and hiring LTU
Hiring the LTU can provide a significant competitive advantage for businesses. It can bring financial value to
your organization while enhancing your organization’s talent acquisition strategy.
Increases access to quality talent
Builds your brand
Reduces recruiting costs

6. Increases access to quality talent
By hiring LTU talent, businesses will find qualified, engaged, and diverse employees.
Increase access to qualified and motivated talent Increase access to diverse talent
A recent study supports anecdotal evidence
that the LTU may be more reliable and loyal
workers, leading to higher retention rates4
30%
of the millennial and Generation X workforce
considers employers commitment to diversity and
inclusion when looking for employoment8
50%
Of LTU belong to a
racial minority group8 LTU represent a strong
source of diverse
candidates
44%
are female8
A study of nearly 20,000 sales and service
workers found virtually no performance
difference between workers who were
previously LTU and short-term unemployed7
The same study also found that workers
who were previously LTU perform slightly
better in average transaction time and
schedule adherence7

7. Builds your brand
Simply by giving LTU job seekers a fair chance at open jobs, businesses will build their local brand by investing
in the people and communities they serve and their national brand by helping to solve a serious problem
affecting the country’s economy.
Strengthen your local brand Strengthen your national brand
55% of surveyed
consumers
300+
Leading companies signed the Best Practices For Recruiting
and Hiring the Long-Term Unemployed
85% of surveyed
consumers
#1 issue
consumers want addressed is local investment in
people, job creation, and infrastructure11
Empowering local economies makes you a
business of choice
Be part of a large group of companies that is publicly
committed to solving this issue
consider whether a business supports local
communities when purchasing products10
will spend more on socially
conscious companies12

8. Reduces recruiting costs
Businesses can significantly enhance sourcing support and reduce recruiting costs by collaborating with
intermediary organizations that work with LTU.
Enhance sourcing support Reduce recruiting costs
118
Average number of applications submitted for an
online job posting13
Intermediaries can help decrease time spent
on reviewing resumes and pre-screening
candidates
$3,500
Average cost of hire a company spends per new
employee14
American Job Centers or intermediaries can help
reduce job board fees


9. References and sources
1”The Employment Situation – August 2014.” Bureau of Labor Statistics. Department of Labor. 5 September 2014.
ttp://www.bls.gov/news.release/empsit.nr0.htm
2Kory Kroft, Fabian Lange, Matthew J. Notowidigdo, and Lawrence F. Katz, “Duration Dependence and Labor Market Conditions:
Evidence from a Field Experiment," The Quarterly Journal of Economics, September 2013.
3Rand Ghayad, “The Jobless Trap” Job Market Paper, Working paper, 2013.
http://media.wix.com/ugd/576e9a_f6cf3b6661e44621ad26547112f66691.pdf
4http://www.workinglinks.co.uk/PDF/The%20Responsible%20Employer%20July%202012%20Full%20report.pdf
5 http://www.marketingprofs.com/charts/2013/10966/consumers-prefer-brands-associated-with-good-causes
6Based on feedback that Deloitte received from multiple interviews with employers and intermediaries.
7Housman, Michael. “The Truth About the Long-Term Unemployed”. EvolvWorkforce Insights. 2014.
8Talent Edge 2020: Building the recovery together—What talent expects and how leaders are responding, Deloitte, April 2011
9Executive Office of the President. “Addressing the Negative Cycle of Long-Term Unemployment.” White House Report. January
2014.
10http://www.conecomm.com/stuff/contentmgr/files/0/fdf8ac4a95f78de426c2cb117656b846/files/2013_cone_communicationsec
ho_global_csr_study.pdf
11http://www.marketingprofs.com/charts/2013/10966/consumers-prefer-brands-associated-with-good-causes
12http://www.nielsen.com/us/en/press-room/2014/global-consumers-are-willing-to-put-their-money-where-their-heart-is.htm
13http://www.forbes.com/sites/jacquelynsmith/2013/04/17/7-things-you-probably-didnt-know-about-your-job-search/
14O’Leanard, Karen. “The Talent Acquisition Factbook 2011: Executive Summary.” November 2011.