Monday, March 10, 2014

Real Unemployment (The U-6 Measurment) Is Still Much Too High at 12.6%

The official unemployment rate is 6.7%. However, if you start counting all the people who want a job but gave up, all the people with part-time jobs that want a full-time job, all the people who dropped off the unemployment rolls because their unemployment benefits ran out, etc., you get a closer picture of what the unemployment rate is: ... U-6.

U-6 is much higher at 12.6%. Both numbers would be way higher still, were it not for millions dropping out of the labor force over the past few years.

Labor Force Factors
    1. Discouraged workers stop looking for jobs
    2. People retire because they cannot find jobs
    3. People go back to school hoping it will improve their chances of getting a job
    4. People stay in school longer because they cannot find a job
    5. Disability and disability fraud ... 

On the surface this month modestly beat expectation with a decent report of 175,000 jobs. Beneath the surface, things looked worse.