How Long Can You be Unemployed Before it Looks Bad?

Chances are someone has told you that it’s easier to find a job when you already have one.

That kernel of wisdom has been bandied about for decades, and most people just accepted it without question.

Evidence supports that belief, as a study was conducted to test those old assumptions. For anyone who’s ever worried about being unemployed for too long, that research offers some interesting insight.

So, how long can you be unemployed before it looks bad?

Whether you have an employment gap to raise children, take care of a sick family member, attend graduate school, or take a career break, this post will tell you what you need to know!

How being unemployed impacts job search success

The data points come as the result of a study conducted by two economists from Sweden: Dan-Olof Rooth and Stefan Eriksson: Do Employers Use Unemployment as a Sorting Criterion When Hiring? Evidence from a Field Experiment.

The study was performed by sending out more than 8,000 resumes to apply for more than 3,500 open positions. Each of the resumes was fake and specifically tailored to list diverse types of employment status. The imaginary job candidates were either gainfully employed or had been unemployed for several months to more than a year.

The results? Let’s break it down by length of unemployment:

Being unemployed for 3 months: no big deal

While being unemployed for 3 months can sometimes seem like an eternity, the research suggests that many job seekers won’t experience any disadvantage from that status that will reflect poorly. This is especially true for jobs that don’t require a great deal of specialized skills.

The biggest surprise came from those low-skill job applications. Many employers viewed that brief stint of unemployment as a bonus since those applicants were readily available for immediate work.

Being unemployed for 6 months: still no significant impact

Being unemployed for less than six months also didn’t seem to impact the job search much. And again, this was more apparent in low-skill jobs. However, that six-month period pushes the envelope when it comes to maintaining your chances for an interview.

The research results suggested diminishing odds of success after that first half-year of being unemployed.

Being unemployed for 9 months: a noticeable downside

Here’s where things get genuinely interesting. There is a downside to being unemployed for 9 months or more, encompassing low and medium-skilled positions. According to the study’s results, once you’ve been unemployed for longer than 9 months, you can expect a significant drop-off in interview requests. The fake resumes sent out by the researchers suffered a 20 percent decline in responsiveness from potential employers.

However, high-skill jobs didn’t experience that same decline. Some believe that is due to the more complex hiring processes in place at those types of companies.

Being unemployed for more than a year: a big red flag

Unfortunately, there’s no way around this last fact: being unemployed for more than a year can raise a red flag and really put a damper on your job prospects. In fact, the research indicated that resumes with a current lengthy period of joblessness experienced little success at landing interviews.

There is good news, though. Once you land that first job after being unemployed for a year or more, your future job search prospects improve dramatically – the gap doesn't continue to impact future hiring.

So, are employment gaps always bad?

The results of that research do offer some hope for job seekers who have experienced a period of unemployment. Obviously, it is always better to be working since that can help ensure your skills remain as sharp as possible. At the same time, though, many workers will experience unemployment – and most employers seem to understand that simple truth.

Moreover, unemployment can mean different things to different people.

If you’re unemployed and spend many months waiting for the right job to come along, that can quickly turn into a negative as your work experience employment gap may become difficult to explain.

On the other hand, if you decide to take time off between jobs to do some freelance work or expand your skill set, you can easily explain to employers how that time helped you become an even more valuable employment prospect.

So, how long is too long to be unemployed?

Based on the research results, the simple answer might be that there’s no such thing as being unemployed for too long. Yes, your odds of landing an interview decrease as your unemployment period drags on, but that doesn’t mean you won’t be able to land a job eventually.

Still, your best options are to:

Find a new job before you’re unemployed
Work diligently to land a new job during the first six months of your unemployment

Once you’ve gone past that six-month period, you’re likely to see diminishing returns on your job search efforts – unless you’re in a high-skilled profession, of course.

How to land a job in the first 6 months of your job search

Since your chances of landing a job are best in your first six months, here are some tips to help you land a job quickly.

1. Update your resume right away

Before you do anything else, it's time to brush off your resume and cover letter. Add your most recent experience as well as any skills or certifications you've acquired since you last opened your resume. You need to do this before you apply for any jobs or reach out to your network.

Depending on how long it's been since you last used your resume, you may need to do a more comprehensive overhaul. Over 90% of companies scan your resume with application tracking system (ATS) software now, so it needs to have keywords and formatting with that in mind.

2. Reach out to your network

Start putting the word out that you're looking for more opportunities. You can mention it to your family and friends, post it on your LinkedIn profile, and send direct messages to contacts in your industry (past co-workers or supervisors).

Networking is the #1 tip on our related guide: How to Find a Job Fast.

3. Launch a strategic job search

Don't start applying to every job you see online. Take the time to read through job descriptions and tailor your resume for each submission.
Do track your applications. Follow up with the company after a few days and again after a couple of weeks.
Don't spend all your time applying for jobs online. You should also be growing your network, learning new skills, and practicing your interview skills. More on this later.
Do use a variety of job boards to locate new opportunities. Look for open positions in your industry and location for better results!

4. Treat your job search like a job

Don’t fall into the trap of just submitting a couple of online applications each week and hoping for the best. When you’re unemployed, you need to focus on your job search with the same level of intensity you would devote to a real job.

Wake up every morning
Review your job prospects
Spend time tailoring your resume for new applications
Follow up on prior submissions
Pepare for interviews

You should also use that time to identify any gaps in your skill set and work on expanding those abilities. No matter how long your unemployment lasts, you want to be able to tell a compelling story about how you used that time to your advantage. Making yourself more marketable and valuable as a potential hire is one of the best ways to begin crafting that narrative.

Tips you can use to navigate periods of prolonged unemployment

It’s one thing to understand how long you can be unemployed before it looks bad. It’s quite another to deal with being unemployed for any extended period without losing your competitive edge. And while we’ve talked briefly about how important it is to continue to move forward with your skill development, we haven’t really talked about how you can do that in an effective way.

The following tips can help you develop a strategy for self-improvement and career advancement during any prolonged period of unemployment.

Do something productive that can fill that employment gap in your resume

Since your employment gap is likely to raise eyebrows if you’ve been unemployed longer than six months, it’s important to find something productive to do as soon as possible.

Do you have a marketable skill that you can employ as an independent contractor? Even if it’s just a short-term gig, it could be enough to help fill that employment gap in your resume.

Alternatively, find a way to volunteer for a charity or other organization that could benefit from your skills.

Spend time focused on professional development

There’s a good reason employers are skeptical about the long-term unemployed: their skills often atrophy over time.

One of the best ways to mitigate that concern is to focus time and attention on skill development. Take an online course to develop a new skill or use continuing education to maintain and even enhance existing skills.

If you can show that you’ve been actively involved in furthering your abilities during your time away from the workforce, that can ease any employer’s concerns.

Don’t forget to take care of yourself

Make no mistake about it: long-term unemployment can wreak havoc on emotional and mental health. For many people, long-term unemployment can cause depression, anxiety, and other psychological distress. According to one study, workers who were relying on unemployment benefits were found to suffer from depression and anxiety at twice the rate of active employees.

The good news, however, is that evidence also suggests that depressed workers who seek and receive help can manage those symptoms and avoid more serious negative mental health concerns. You can also avoid some of that distress by focusing on your own mental health during any period of unemployment. For example:

Resist the temptation to doubt your worth as an employee. Unemployment can happen to anyone, regardless of talent or experience.
Focus on a positive mindset. Conduct a self-analysis of your skills and engage in positive self-talk to remind yourself of the type of value you can provide as an employee.
If necessary, make a conscious effort to look at yourself in the mirror each day and talk about all the positive things that should make any company want to hire you.

The reason this is important should be obvious: if you allow yourself to develop a negative mindset, it will invariably affect the way you present yourself to the world. Employers who offer you interview opportunities will quickly notice your negative attitude and reject you in favor of a more positive candidate.

Consider getting help with your job search

Our last tip is one that you can use at any point in your job search. It involves asking for help from experts who can increase your odds of finding a job quickly. While most people tend to believe that they know how to find employment, the reality is that there are times when the usual approaches just won’t work. That’s when it’s time to turn to a career counselor or other expert who can provide insight into new job search techniques and strategies.

Unemployed doesn’t mean out of luck

Hopefully, this post has answered any questions you have about how long you can be unemployed before it looks bad. While it might be better to find new employment while you still have a job, the reality is that you're not out of luck if you lose your job unexpectedly.

You have six months until most employers really start to care about employment gaps and plenty of ways to deal with long-term unemployment if it becomes unavoidable. Follow this advice from ZipJob's team of career experts to quickly find a new job!

Struggling with long-term unemployment and in need of help to ensure that your resume is ready to make the right impression on hiring managers? Get your free resume review from our team of experts today!