Disclaimer: We merely wish to better understand the world we live in and the implications of things that happen around us, both within our control and beyond our control - this blog is a diary of that journey. Along the way, we will share links, videos and express some opinions (solely ours) which should be considered with a pinch of salt. We are neither experts nor do we wish to be considered as one - if you think we are stupid, please let us know.

Monday, December 20, 2010

Real Unemployment Numbers

The regular unemployment rate (U3 statistic) reported in the press and by the government (9.8%) is not an accurate measure of unemployment. The Bureau of Labor Statistics also tracks the U6 measure - which includes people who have given up trying to get new jobs or part-time employees trying to work additional hours. http://articles.moneycentral.msn.com/learn-how-to-invest/The-real-unemployment-rate.aspx

The U6 measure is approximately 17% which means 1 out of every 6 American is either unemployed, underemployed or discouraged from looking for more work.

If you want to take this a step further and seasonally adjust the unemployment rates, you end up with 22% unemployment. http://www.shadowstats.com/alternate_data/unemployment-charts

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