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The ‘Real Jobless Rate’ Worse Than Reported

From CNBC:


‘Real’ Unemployment Rate Shows Far More Jobless

By Jeff Cox | Thursday August 2, 2012

While the national unemployment rate paints a grim picture, a look at individual states and their so-called real jobless rates becomes even more troubling.

The government’s most widely publicized unemployment rate measures only those who are out of a job and currently looking for work. It does not count discouraged potential employees who have quit looking, nor those who are underemployed — wanting to work full-time but forced to work part-time.

For that count, the government releases a separate number called the “U-6,” which provides a more complete tally of how many people really are out of work.

Why are we getting these kind of stories now? Do they think everybody is on vacation?

The numbers in some cases are startling.

Consider: Nevada’s U-6 rate is 22.1 percent, up from just 7.6 percent in 2007. Economically troubled California has a 20.3 percent real rate, while Rhode Island is at 18.3 percent, more than double its 8.3 percent rate in 2007…

These are near Great Depression era levels. (Which measured unemployment using the U6 rate.)

Only three states — Nebraska (9.1 percent), South Dakota (8.6 percent) and North Dakota (6.1 percent) — have U-6 rates under 10 percent, according to research from RBC Capital Markets.

Election battleground states paint a picture not much more flattering. Florida’s U-6 number is an ugly 17 percent, though Pennsylvania and Ohio are both around 14 percent, below the national U-6 average.

And yet, we are supposed to believe that Obama is wildly popular in those battleground states.

By the way, according to today’s report from the BLS, the U6 went up in July from 14.9% to 15%. Though they did their best to bury that information.

This article was posted by Steve Gilbert on Friday, August 3rd, 2012. Comments are currently closed.

3 Responses to “The ‘Real Jobless Rate’ Worse Than Reported”

  1. GetBackJack

    and …. “Only 24.6 Percent Of All Jobs In The United States Are Good Jobs”

    Source

  2. Anonymoose

    We are in a new Depression, just the people who would have been in bread lines are staying with relatives who have jobs or living on extended unemployment benefits.

    For many years I would have been considered a U-6 number, and I know several who are in that category. Even in the full time employed category it’s bleak, as people work jobs under contract or term labor that could disappear at any time.

    The traditional idea of working for the same company for decades of stability is long gone. Unions still want to pretend the big bad corporations are keeping them down, even though their members make more than most people.

    But we’re competing in an open world job market now; even if the unions didn’t exist the most motivated and hard working person in the US can’t compete with someone in Asia who only needs to be paid as quarter as much for a living wage. Further, what was once executive level perks, health insurance and retirement, that migrated down to average workers in good economic times, are now mandated by law.

    Pensions are now albatrosses to many employers, who do anything they can to avoid having people employed as full time workers to save money. Hence all the contract work and part time jobs. And you know, I’d much rather finance my own retirement than worry about some company which won’t even be here in 10 years taking care of me.

    We still live in a time of free and loose credit, where we can retail binge as much as we please, and all that debt being considered as good as money in the bank by the lenders. Most of us wouldn’t be able to afford cars or houses if it weren’t for credit, but it’s hard not to feel it’s all going to collapse in a financial disaster worse than anything seen before, with debts no one can pay off and no jobs as they’re all in other countries.

    The Democrat’s solution under Obama has been to play FDR and spend-spend-spend. But while FDR at least kept the lights on and put money into infrastructure, Obama has put the money into who-knows-where projects and EBT cards so the welfare crowd can eat potato chips. Lost on all of them is FDR’s plan was failing, and what saved him was the increase in manufacturing with the Second World War—I don’t see anything coming up to put the economy back on track.

    Jobs are for the young, who are willing to work hard, who don’t have health problems and are likely to leave before retirement kicks in anyways. The “approved” minorities keep jobs as employers are afraid to let them go and face a discrimination lawsuit. Everyone else is scared and stressed out wondering how long they’ll be employed and if this job may be their last before they get into the too old to work but too young to retire category.

  3. Rusty Shackleford

    I always prefer paying attention to the U-6 number. To me it’s more real and tangible than some gerrymandered statistical aberration which gets “seasonally adjusted” and otherwise manipulated for accounting purposes.

    Since I was a very young child, asking my parents and grandparents how the world works, I have noted that staying with one company or entity (like the US Military) for a career and retiring from same was probably not going to happen for me. Not the least of which is the cost to keep me employed.

    As a side note, it’s funny to hear the manipulators of data and what they call things. “right-sizing” as opposed to “firing the old farts ‘cuz they cost too much”. Yet, the old farts are the ones who have seen the evolution of the business and know how to make things work. But alongside the desire to maximize profits is also the youthful arrogance of know-it-all MBA-holders whose first target is always anyone over 50 in the workplace.

    This is perhaps where capitalism truly does lack compassion. Our youth-oriented society hasn’t valued wisdom in the older-types for decades. Personally, I’m going to hang on to my well-paying job as long as I can but…I’m also trying to figure out how to start a business of a unique nature that might yield some significant income. But that hinges on whether or not the democrats keep controlling the playing field. I don’t know if Romney will stand up against the notion of “compromise” with national socialists or not. Because….even in big business….it’s often a socialist environment. Everyone has to sacrifice so the people at the top can get their large paychecks. There are marked differences, of course but when you work for a company…you have to abide by their rules, their schedule and not ever say anything negative about the boss(es). But I digress.

    I fear for my future as a senior citizen, which is looming on the horizon. I have a health issue and when I stop working, the government will decide I’m just a drain on the economy and slowly deny me my medication and treatment since it’s very expensive just to live day-to-day. Not as expensive as many other treatments but diabetes can be cost prohibitive and will be even moreso when more and more companies elect to not produce insulin because they cannot stay in business because the government won’t pay what it costs to produce it. (Look up the people who figured out how to synthetically reproduce insulin….they are all billionaires….the three of them. (Leslie Stahl, the extraordinary *itch that she is…..did an interview with one of them and could only keep asking how much he paid for his yacht).

    The future, unlike the song by Timbuk 3 about wearing shades because it’s so bright….is looking bleak, very European and very financially insecure for me. I may have to become a thief in my retirement.




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