Post by Sailor on Feb 4, 2015 16:15:22 GMT -8
Here's something that many Americans -- including some of the smartest and most educated among us -- don't know: The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading.
Right now, we're hearing much celebrating from the media, the White House and Wall Street about how unemployment is "down" to 5.6%. The cheerleading for this number is deafening. The media loves a comeback story, the White House wants to score political points and Wall Street would like you to stay in the market.
None of them will tell you this: If you, a family member or anyone is unemployed and has subsequently given up on finding a job -- if you are so hopelessly out of work that you've stopped looking over the past four weeks -- the Department of Labor doesn't count you as unemployed. That's right. While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news -- currently 5.6%. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren't throwing parties to toast "falling" unemployment.
There's another reason why the official rate is misleading. Say you're an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 -- maybe someone pays you to mow their lawn -- you're not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.
More here:
www.gallup.com/opinion/chairman/181469/big-lie-unemployment.aspx
What Is the Real Unemployment Rate?
The real unemployment rate (U-6) is almost double the widely reported rate (U-3) issued in each month's jobs report. The Bureau of Labor Statistics (BLS) reports on both each month, but there isn't as much media attention paid to the real unemployment rate. However, it may paint a clearer picture of true unemployment in the United States.
In the widely reported unemployment rate (U-3), the BLS only counts those who have looked for a job in the past four weeks as unemployed. They're included in the labor force, because their jobless situation is only temporary (hopefully).
More here:
useconomy.about.com/od/suppl1/f/real_unemployment_rate.htm
Even this article may be over optimistic reporting the U-6 rate at 11.2%, it may be as high as 14%.
Right now, we're hearing much celebrating from the media, the White House and Wall Street about how unemployment is "down" to 5.6%. The cheerleading for this number is deafening. The media loves a comeback story, the White House wants to score political points and Wall Street would like you to stay in the market.
None of them will tell you this: If you, a family member or anyone is unemployed and has subsequently given up on finding a job -- if you are so hopelessly out of work that you've stopped looking over the past four weeks -- the Department of Labor doesn't count you as unemployed. That's right. While you are as unemployed as one can possibly be, and tragically may never find work again, you are not counted in the figure we see relentlessly in the news -- currently 5.6%. Right now, as many as 30 million Americans are either out of work or severely underemployed. Trust me, the vast majority of them aren't throwing parties to toast "falling" unemployment.
There's another reason why the official rate is misleading. Say you're an out-of-work engineer or healthcare worker or construction worker or retail manager: If you perform a minimum of one hour of work in a week and are paid at least $20 -- maybe someone pays you to mow their lawn -- you're not officially counted as unemployed in the much-reported 5.6%. Few Americans know this.
More here:
www.gallup.com/opinion/chairman/181469/big-lie-unemployment.aspx
What Is the Real Unemployment Rate?
The real unemployment rate (U-6) is almost double the widely reported rate (U-3) issued in each month's jobs report. The Bureau of Labor Statistics (BLS) reports on both each month, but there isn't as much media attention paid to the real unemployment rate. However, it may paint a clearer picture of true unemployment in the United States.
In the widely reported unemployment rate (U-3), the BLS only counts those who have looked for a job in the past four weeks as unemployed. They're included in the labor force, because their jobless situation is only temporary (hopefully).
More here:
useconomy.about.com/od/suppl1/f/real_unemployment_rate.htm
Even this article may be over optimistic reporting the U-6 rate at 11.2%, it may be as high as 14%.
