Joint Effort

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The Unemployment Rate is What?

ccc-unemployed_menThe “official” unemployment rate that is “released” to compare apples to apples by the US government every month is somewhat misleading!  The “official” unemployment rate dramatically understates the true number of unemployed and underemployed.

The Bureau of Labor Statistics releases six different numbers every month: U-1, U-2, U-3, U-4, U-5 and U-6  (LINK)

U-3 is the “official” released unemployment rate. This number came was 8.1% for February 2009.   U3: Total unemployed, as a percent of the civilian labor force (official unemployment rate.

In reality, the U6  rate was much higher. If you want to be honest about the employment situation, then you should refer to U-6.  This number was 14.8% in February 2009.  And, if not seasonally adjusted the number comes in at 16.0%.   U6: Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers.

As is the case with any set of numbers, one can usually twist them to best present one desired outcome.  The often-quoted unemployment rate of 24.75% in 1933 ( The Great Depression) would be a great deal lower if it was calculated according to today’s “official” formula – maybe 5-10% lower…  

So if you are like me today, (unemployed) trying hard to find work in this dismal market and sending resumes into a black hole…  The unemployment percentage  is just another dark cloud to further depress you!   You might just for the hell of it, send one to IBM with an e-mail and ask why they plan to lay off 5000, and then plan to outsource all the work to India? (LINK)   There’s a thought – Move to India!  You can buy a brand new 2009 Tata Automobile for under $2K!

Need a break from sending resumes out – Visit Odd Todd for a great laugh!

Kindle – Amazing new Wireless Reading Device

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