Extended Job Searches Drain Savings, Fuel Debt

The extended duration of job searches is placing significant financial pressure on many Americans. As of January 2026, the median unemployment duration stood at over 11 weeks, a notable increase from previous years. A quarter of unemployed individuals had been seeking work for 27 weeks or longer. This prolonged joblessness is particularly challenging given that nearly half of U.S. adults report not having a three-month emergency savings fund.

Workers like Michele Wilke, who faced eviction and accumulated over $20,000 in personal debt during an eight-month job search, highlight the precarious financial situations. Clair Todd, laid off in November 2023, has depleted over $50,000 in savings and now resells antiques for supplemental income. Joanelle Cobos, while having a $25,000 emergency fund, estimates it will last less than a year.

Even those with initial savings, severance, or unemployment benefits are finding it difficult to cope. Rising costs for essentials like housing and food exacerbate the strain on household budgets. The situation underscores the growing financial risks associated with longer unemployment spells, even as overall layoff numbers remain historically low.