November 23, 2009
The ‘Real’ Jobless Rate: 17.5% Of Workers Are Unemployed
Published: Thursday, 19 Nov 2009 | 4:55 PM ET
As experts debate the potential speed of the US recovery, one figure looms large but is often overlooked: nearly 1 in 5 Americans is either out of work or under-employed.
According to the government’s broadest measure of unemployment, some 17.5 percent are either without a job entirely or underemployed. The so-called U-6 number is at the highest rate since becoming an official labor statistic in 1994.
The number dwarfs the statistic most people pay attention to—the U-3 rate—which most recently showed unemployment at 10.2 percent for October, the highest it has been since June 1983.
The difference is that what is traditionally referred to as the “unemployment rate” only measures those out of work who are still looking for jobs. Discouraged workers who have quit trying to find a job, as well as those working part-time but looking for full-time work or who are otherwise underemployed, count in the U-6 rate.
With such a large portion of Americans experiencing employment struggles, economists worry that an extended period of slow or flat growth lies ahead.
“To me there’s no easy solution here,” says Michael Pento, chief economist at Delta Global Advisors. “Unless you create another bubble in which the economy can create jobs, then you’re not going to have growth. That’s the sad truth.”
Pento warns that forecasts of a double-dip (“W”) or a straight up (“V”) recovery both could be too optimistic given the jobs situation.
Instead, he believes the economy could flatline (or “L”) for an extended period as small businesses struggle to grow and consequently rehire the workers that have been furloughed as the U-3 unemployment rate has doubled since March 2008.
November 16, 2009
The unemployment rate has now hit a whopping 10.2% as more and more Americans lose their jobs…
…and that number doesn’t count those who have given up looking for work or are stuck in part-time jobs. It includes only those who are actively seeking work.
Indeed, the broader rate is at an astonishing 17.5%.
According to Bloomberg:
Payrolls fell by 190,000 workers last month, compared with a 175,000 drop anticipated by the median forecast of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington.
The jobless rate gained from 9.8 percent in September and exceeded 10 percent for the first time since 1983.
But I thought if we passed Obama’s $787 billion porkulus bill, unemployment wouldn’t go over 8%. After all, Obama promised!
Do you remember this chart, shown repeatedly by the Obama administration as evidence that if we failed to pass the messiah’s economic “stimulus” bill, unemployment would soar to 9% by the first quarter 2010, but if we passed his massive spending bill unemployment would peak at a mere 8% in the third quarter 2009 and then drop continuously as more and more Americans returned to work?
Well, we let our leaders pass Obama’s spending bill, and unemployment shot up to 10.2%. That’s an extra point and a half higher than what Obama claimed unemployment would be if we didn’t pass his bill.
Another 190,000 Americans out of work. Obama’s “green shoots” are turning brown.
Can we ever believe anything this man says?
November 16, 2009
I will promise you this, that if we have not gotten our troops out by the time I am president, it is the first thing I will do. I will get our troops home. We will bring an end to this war….”
He won the election on an anti-war platform that turned out to be a complete lie.
Then he won the Nobel Peace Prize for the ”peace” he never brought about.
And his supporters still swoon at every word that comes out of his mouth.
This is liberalism at its finest.
I thought conservative radio talk show host Michael Savage was being a bit too harsh when he wrote his book, Liberalism is a Mental Disorder.
Now I think he wasn’t harsh enough. Liberals are just plain crazy. There’s no other explanation for it.