Why The Real Unemployment Rate Is 17.2 Percent

[Better Believe It]

Why The Real Unemployment Rate Is 17.2 Percent
by Erick Schonfeld
December 4, 2009

The U.S. unemployment numbers are out today, and most headlines will show that the U.S. unemployment rate in November was 10.0 percent, down from 10.2 percent in October. That number is depressingly large, but even that under-counts the true number of unemployed. For instance, it doesn't count those people who don't have a job and have given up looking for one, or those who have found marginal part-time work but still can't make ends meet and are still looking for a full-time job.

The government keeps stats on all of these "marginally attached workers" and people "employed part time for economic reasons" (rather than by choice). If you add all of those people in, the total unemployment rate in the U.S. is 17.2 percent, compared to 12.6 percent a year ago. The only good news is that number is down from 17.5 percent in October.

http://www.washingtonpost.com/wp-dyn/content/article/2009/12/04/AR2009120402024.html

The Unemployment Game Show: Are You *Really* Unemployed?

http://www.youtube.com/watch?v=Ulu3SCAmeBA&feature=player_embedded

And the "official" unemployment rate will remain at 10% or higher most of next year according to Roubini and most credible economists.

That's why we need billions for jobs, not war.

[backscatter712]

1. The good news is that U6 is also down this month.

Obviously, we have a long way to go, but this is the first time the unemployment rate (U3 or U6) went down.

[Better Believe It]

2. That is good, however, we have to be objective and look at the long, long road to what will

only be a partial staggering "recovery" unless bold action is taken to jump start the economy on the scale necessary to create jobs for all. Right now unemployed people are beginning to lose their COBRA medical insurance assistance because Congress is sitting on legislation to continue that benefit! And there is no sign the Obama administration is leaning on Congress to renew that assistance.

Optimists expect the unemployment rate may "drop" to 8% by 2012 which would normally be considered a really deep recession. We should not accept 7% or 8% unemployment as the new "full employment" benchmark.

We can't accept a permanent army of millions of unemployed and underemployed, millions of future foreclosures, cuts in social security and other so-called "entitlement" benefits next year, continued cuts in average wages and benefits for those who are still working and a permanent drop in living standards for the great majority while the top one tenth of one percent continue to amass personal fortunes.

[Kitsune]

3. I'm glad the media is finally admitting the existence of the U6 number

Of course they had to wait until a Democrat was in the White House to criticize the way the numbers are juggled, but at least the bullshit number jugging is getting called out.