A stark statistic from the Household Survey:
The number of long-term unemployed (those jobless for 27 weeks and over) rose by 293,000 to 5.9 million. The percentage of unemployed persons jobless for 27 weeks or more increased by 2.7 percentage points to 38.3 percent. (See tables A-8 and A-9.)
There may have been fewer unemployed people (20 basis point drop) according to the headline number, but the people who are unemployed are staying unemployed longer.
There has to be an effect in GDP that shows itself as result of this trend.