The media and government officials often tout the unemployment rate using the official, or U3 rate, which stands at 10.2% for October. While 10.2% unemployment is certainly bad enough – it’s the highest rate nationally excluding 1983s 10.8% – it pales when compared to the U6 unemployment rate. First let’s discuss the differences between U3 and U6 measures.
According to the Bureau of Labor Statistics (BLS) the U3 measure is described as “total unemployed, as a percent of the civilian labor force (official unemployment rate).” Now let’s take a look at the BLS U6 measure: 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.
When including marginally attached workers and those forced to work part-time instead of full-time we have a national unemployment rate of 17.5%, which is nearly 70% higher than the U3 rate of 10.2%. That’s a dramatic increase from the normally quoted U3 unemployment rate, but even U6 fails to provide the actual percentage of people who are, or may be considered unemployed.
John Williams discusses alternative unemployment data sets at his Shadow Government Statistics site. Their service, in part, “exposes and analyzes flaws in current U.S. government economic data and reporting.” Once those flaws are included in the unemployment calculation – called the SGS Alternate – the unemployment rate reaches 22%. Shadow Government Statistics gives the following reason for SGS Alternate measure: “The SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated “discouraged workers” defined away during the Clinton Administration added to the existing BLS estimates of level U-6 unemployment.”
To clarify why the discrepancy between U6 and the SGS Alternate rate of 22%, I contacted the BLS and received the following answer to my question about the change in discouraged worker designation during the Clinton Administration:
“(P)rior to 1994 persons were not asked whether they had searched for work recently. If they gave one of the five “discouraged worker” reasons for not looking for work in the past 4 weeks, they were assumed to have “given up” the search for work, although they weren’t asked when they had last looked. As a result of the greater specificity introduced in 1994, the number of discouraged workers was cut approximately in half, from about 1.1 million in 1993 to 500,000 in 1994.”
About 600,000 people were removed from the unemployment calculations in 1994, so if you merely add those 600,000 to the current U6 number, the rate of unemployment would be much higher than 17.5% and would more accurately be reflected in the SGS Alternate unemployment rate of 22%.
As of last winter I stated that the real unemployment rate is 20% or higher. My findings are based on the number of government unemployment claims (the figure which the government uses) which was 9.5% , then I add in for all the people who don’t qualify for unemployment benefits. Small businesses that have failed, service related individuals, people who are contracted to work without benefits, homeless, retired men and women who have lost work and need extra income besides social insecurity and lastly illegals. Remember during the great depression unemployment was 14% now your article claims unemployment is at 22% lets see what they base their findings on!
All right ! breaking it down so we can understand it. The government arrives at the No. of unemployed using the No. of unemployment applicants who worked full time who were employed by companies who paid taxes and paid unemployment insurance. According to the Bureau of Labor Statistics (BLS) the U3 measure is described as “total unemployed who were full time employees. Now According to the Bureau of Labor Statistics (BLS) U6 measure: Total unemployed,(U3) plus all marginally attached workers, plus total employed part time for economic reasons = (U6). As of October 31st 09, U3+U6=17.5%According to the Bureau of Labor Statistics. Now this author uses discouraged worker designation (DWD) politicians all know that poles and unemployment No. affect not only how people feel but how they vote and will do whatever they can to soften unemployment numbers and strengthen economic numbers (cash for clunkers for instance). 1994 was no difference Clinton saw the economy was going in the toilet and came up with a way to make the unemployment problem look better than it was not by lying; just not telling the whole truth. This practice is still going on today if your one of the unemployed and are asked if you’ve looked for work and you say no your case may be classified, discouraged worker designation. So As of October 31st 09, U3+U6=17.5%+(DWD) 1994=22%. add in for all the people who don’t qualify for unemployment benefits. Small businesses that have failed (that didn‘t pay unemployment ins.), service related individuals, people who are contracted to work without benefits, homeless, retired men and women who have lost work and need extra income besides social insecurity and lastly illegals. Which will call the forgotten workers (F.W.) So U3+U6=17.5%+(DWD)=22%+(F.W.@11%)=33%. Now that’s scary, the total unemployed in these United states is at 33% there are estimated to be 3.5 million people homeless living at or below poverty levels in America according to homeless estimates, if we figured just half of these people were looking for work or unemployed it would send the unemployment numbers over 34% that’s not including all the people who don’t qualify for unemployment benefits. Small businesses that have failed (that didn‘t pay unemployment ins.), service related individuals, people who are contracted to work without benefits, retired men and women who have lost work and need extra income besides social insecurity and lastly illegals. In closing a warning to our politicians and our vain, corrupt and slumbering media, you can fool all the people some of the time and some of the people you may fool all the time, but you can’t fool all the people all the time and G-d is neither fooled or forgets…. psalms 12:1 Deliver, Lord!
For the godly have disappeared;
people of integrity have vanished.
12:2 People lie to one another;
they flatter and deceive.
12:3 May the Lord cut off all flattering lips,
and the tongue that boasts!
12:4 They say, “We speak persuasively;
we know how to flatter and boast.
Who is our master?”
12:5 “Because of the violence done to the oppressed,
because of the painful cries of the needy,
I will spring into action,” says the Lord.
“I will provide the safety they so desperately desire.”
12:6 The Lord’s words are absolutely reliable.
They are as untainted as silver purified in a furnace on the ground,
where it is thoroughly refined.
12:7 You, Lord, will protect them;
you will continually shelter each one from these evil people,
12:8 for the wicked seem to be everywhere,
when people promote evil
149:4 For the Lord takes delight in his people;
he exalts the oppressed by delivering them. Nothing says it better than the word of G-d and I take comfort in the knowledge that G-D does hear and will act your brother in Christ Perry.