Well folks, as mentioned in a previous post , the stimulus has failed to work again. Unemployment has risen to 10.2%, from September’s 9.8%; the highest since 1983. Nearly 16 million people can’t find jobs even though the recession has apparently ended (Cash for Clunkers and tax credit for first time homebuyers have inflated the number). According to the Department of Labor, the economy lost another 190,000 jobs in October. This is the 22nd straight month that the economy has lost jobs, the longest in the last 70 years. Experts say that the unemployment rate could rise as high as 10.5% next year as employers are unwilling to hire.
Thanks to President Bill Clinton, who in 1994 changed the way unemployment is calculated, the government figure is not complete resulting in misleading information passed on to the public. Currently, the actual unemployment rate, which is known as U-6, is 17.5%. How is that you may ask? Easy. As previously mentioned, in 1994 Clinton administration decided that the Bureau of Labor Statistics would no longer include, as they did prior to 1994, those who were “marginally attached workers, discouraged workers, or those who are part-time employees that which to work full-time.”
Marginally attached workers are those who currently are neither working nor looking for a job, but say that they want and are available for a job and have looked for some time. If you had a full-time job and you settled for a part-time job instead because of economic reasons, you are not included. People under this category want to work full-time, but they can’t sit around and wait for a full-time job to land on their lap so they settle for the next best thing, a part-time job. If you stopped looking for a job because you looked for months and months and did not find one, you are not included. People in this category are labeled “discouraged workers” because they are discouraged. They have been searched for a job in every possible place you can think of and they have turned up with nothing, zero, nada.
As you can see from above, there are a lot of people that are not been factored in along with the governments “unemployment rate” of 10.2%. Discouraged workers and those who settled for a part-time job are a result of the current economic situation we are facing. The true actual unemployment rate, 17.5%, is what should count when looking to see if the job market is on the rise. Just keep in mind what the true unemployment rate is and don’t be fooled by the governments number. Yes, their number is the official gauge everyone goes by, but it is not the ACTUAL picture of the crisis. The Bureau of Labor Statistics continues to keep track of the true unemployment rate, they just don’t.
Lastly, according to the New York Times the previous high for the true unemployment rate was in 1982 (17.1%). Don’t be fooled !!