Subscribe to this BlogUnemployment numbers may be worse than you think
Friday’s news that the official unemployment rate is now at a 26-year high of 9.4% is actually a rosy spin on what is really happening.
The official unemployment stat that gets the headline treatment, the BLS’ U-3 data set, doesn’t count all sorts of folks who are unemployed and underemployed.
To get a more comprehensive snapshot of the labor picture you need to focus on the less well-known U-6 data set known as “alternative measures of labor utilization.” The U-6 includes folks counted in U-3 plus “ all marginally attached workers” as well as people who aren’t working full-time but wish they were (i.e., the underemployed.) Marginally employed covers “persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past.”
And when you add up U-3 and all the underutilized workers the official U-6 rate for May 2009 is 16.4%. That’s an official BLS-generated stat that no one really wants to talk about: One out of every six members of the civilian labor force is either out of work or not fully employed. (And that doesn’t even account for the rising ranks of workers coping with furloughs.)
Okay, so exactly how bad is that from a historical perspective? Pretty bad. The BLS began reporting U-6 in 1994; in January 1994 the U-6 rate was 11.8% and then steadily declined before reaching an all-time low in October 2000 of 6.8%. During the ensuing recession/bear market U-6 peaked at 10.4% (Sept 2003) until the credit crisis took hold in 2008. The U-6 rate hit 10.9% in August 2009 August 2008 and has been on a rapid climb ever since; over the past year it has shot from 9.8% to today’s 16.4%. It sure makes it hard to buy into the green shoots theory just yet.
–Carla Fried
Cecila, the indentured servant, wrote:
"For the entire US economy to slide so dramatically in such a short time, it almost has to be orchestrated by those in power. Remember, we have implemented every single plan that Obama has proposed, and things have just steadily gotten worse and worse.
Cecilia, you are profoundly naive (or have very convenient amnesia about the years before Obama entered office).
The current steady slide began in the fall of 2007, a year before Obama was elected and at least 15 months before he even took office. The original seeds were planted in the 1980s, with the advent of Reaganomics, so, in actuality, this is the culmination of 30 years of simpleminded supply-side, laissez-faire delusions.
None of the current crises was the result of Obama policies. All originated with Bush's supply-side, unregulated "free market", massive deficits, tax-cuts for-the-rich hoodoo and were well underway long before Obama entered office.
So far, all Obama has been attempting to do is to try to slow the slide, and there is indication that, even though his caution and his attempts to cooperate with the Republicans and Corporate interests whose policies precipitated this mess are hampering his effectiveness to a degree, his programs are at least having some modest success.
People are still losing jobs at an unacceptable rate, but that monthly rate is shrinking now, not accelerating as it did under Bush.
Economists who were worried that we were on the edge of the abyss of a second Great Depression six months ago are now saying that, though we are still far from safe, we have at least moved back from the edge a half a foot.
Think of this metaphor – the Republicans pushed the economy off the Empire State Building and, as the economy was plunging past the 20th floor, Obama was handed the reins. So far, though he hasn't been able to prevent the fall, he has at least slowed the descent and given us a bit of time to try additional tactics.
Its kind of like Bush handing Obama a dead rat and saying, here's the economic crisis – its almost finished.
And now, in an exercise of blatant and obscene chutzpah, the Republicans who trashed the economy are blaming Obama for not cleaning up their heaping, steaming pile of horse puckey fast enough.
You simply can't win against a Republican party that doesn't care what happens in the country or the world as long as they can spin and criticize it for partisan political gain (when candidate Obama was on a campaign trip abroad, the RNC put together two campaign commercials. If Obama didn't visit the troops in Iraq, they would show the commercial that accused him of not supporting the troops. If he did visit the troops, they'd air the alternate ad accused him of exploiting the troops for political reasons).
How can anybody with an IQ higher than a dead mackeral see the GOP as anything but a big Acorn Academy being run by the craziest patients?
The rational mind fair boggles…
I am currently on unemployment, and have decided to train for a different career (healthcare–RN–#1 in-demand job in the nation according to the US Dept. of Labor) since I've been unable to find a job, as I live in a state whose unemployment rate is a whopping 12.4%. I'm entering my 3rd semester of college and currently have a 3.80 GPA. I'm a full time student, father of a 6 year old, and am still required to look for a full time job by my state's unemployment program.
The reason for all the background info. is this: The state in which I filed my unemployment claim offers an "approved training" benefit–up to 104 weeks of unemployment benefits if you go to school full time, which I've done since January. This program also exempts the approved individual from job search. I was rejected from the "approved training" program because I was told that my training program was too long–about 128 weeks instead of the 104 afforded by the program (they said it paid up to 104 weeks, but neglected to mention that the field of training a person enters is governed by this limit). Nevermind the fact that I'm training for the #1 understaffed job in America. One that's nearly recession-proof.
I've since exhausted all my unemployment benefits, and will exhaust my emergency unemployment in a couple months, leaving us with ever increasing student loans and my wife's part time job as our only sources of income. I don't know how I'll finish school.
The current administration has done a good thing by stimulating every state's unemployment fund, but hasn't done so well in regulating how those funds are spent.
I guess I would have been better off training for a mediocre career instead of reaching for the stars. At least I'd be able to feed my family. So much for higher education….
Money needs to be the least of what most Americans need to think about right now for me. During the great depression the media did not have the panic button being press as it is being done now. Now if you look at the time the U.S> came into the depression it was after World War 2 , Now in my therory i call it the "post war syndrome" Government spending on wars and building other country econmomy (Iraq) makes it easyily seen as the main contributer to lost of income hence triggering a calpaspse in government funds which affect alot of americans. So in my final thought i think the real reccesion is still to come proberly in the next 4-5 years when the U.S will fell the effects of "War Spending"
Sean Cali
Speaking of the employment situation, Junior Achievement just put out a new report about how the country needs a more "Entrepreneurial Workforce" to remain competitive. It's kind of a different way of looking at the problem. Here's the link http://www.ja.org/files/The_Entrepreneurial_Workforce_full-11.pdf.
I read people blaming our unions for the situation we are in. Nothing could be further from the truth. I am not now nor have I ever been a union member because my industry just didn't see it as necessary. Well the real problem isn't that American and European workers are over compensated. The real problem is we allow countries whose workers are badly under compensated to compete with our companies 'fairly'. Define 'fair trade'… shouldn't fair trade mean that all workers in the same industry receive equivalent compensation (not equal as that simply doesn't compute based upon varying costs of living)? Shouldn't the original reasons for the unions (workers get a living wage, a safe environment to work in, and some kind of medical benefits) still be relevant to us all? I think it's actually time for the unions to become powerful again. They are the only reasons we have a 40 hour work week (except former Pres. Bush took that one away… remember… no overtime anymore!), paid benefits, a safe workplace, environmental controls, paid vacations… do we not care about these anymore?! I say we tell our representatives in the Congress and Senate that we want to see laws that level the playing field. The reason our manufacturing and industrial sectors have been hit so hard is NOT because of the unions or 'lazy Americans' it's because we let the 'emerging nations' bring down our wages by essentially using 'wage slaves' to compete against our products. Fix that Mr and Mrs Senator and the economy will fix itself. Anybody with me on this?!
Indentured Servant Cecilia has great insight. It is true, not one of Obama's proposed plans has not been implemented. Everything he proposes as a new legislation passes. All the legislation requires a great deal of money. Cash for Clunkers and the $8,000 for new home purchases just seem to be a way to spend money on purpose and of course send us deeper into dept.
How could everything in the economy just start sliding down hill all at once. I see no money saving idea's, except maybe to rob the retiree's of the S.S. they worked and paid into for 40 years.
A perfect example of the genius of our President and the law makers on Capital hill is not to long ago they announced the plan for a stimulus package to help the auto industry. Its’ terms were you were allowed loans up to 39,500 on a new car purchase, and were able to deduct the interest and sales tax. HOWEVER, it did not apply to individuals making more than 125K or couples making more than 250K. Lets see, first of all if your not making this you should be taking out loans for that amount for a car (isn’t that what got us into this mess to begin with?!!!). Second, if you’re trying to stimulate car purchases why wouldn’t this be extended to those with more discretionary money!!!!
We should have two different minimum wages: one for service sector jobs and the other for manufacturing jobs. The manufacturing minimum wage could be kept at the present level or dropped slightly. The service sector minimum wage should raised so that it is 2 to 3 times greater then the manufacturing minimum wage. This would cause inflation of the cost of service-based 'goods' here in America. However, the cost of our exports would still be competitive, maybe more so. The cost of foreign imports here in America might rise some responding to out increased demand, but not as quickly as local service 'goods'. The higher service sector wages would trap a higher velocity of money within our economy. The differential in minimum wages could be artifically maintained as the economy seeks a new equilibrium. As our economy is primary service sector jobs, this will make most Americans feel richer relative to the rest of the world and take advantage of the USA's unique competitive advantage (the consumer, [ha, ha]). Manufacturing jobs in America would be low wage, but the jobs would be more plentiful. Other countries would follow suit but only countries with a large service sector and consumers could play the NEW GAME. We could then more easily buy their silly oil. We would partially de-couple ourselves from the goods-based economy. Don't play a game we can't win. Change the game!
SHHH….you're not drinking the Obama Koolaid. If this were China you'd all be tortured for writing these comments. Remember, the economing is turning, further down the dumper but we're going to turn a blind eye to it.
What about all of the small businesses – the backbone of our economy for the last 20 years who are not showing up on any statistic because they not qualified to collect unemployment because of a business assignation (i.e. LLC), but are nevertheless not working because there clients have dried up? I would think the real umemployment rate is in excess of 25%.
We all know that the information we are getting via the "regular" media is false. I do not know one single family that is not in trouble, and we are of all different ages and careers. Many older people are so disgusted and/or depressed, they have stopped looking.
I just went to my daughters college graduation. It was so depessing people were crying…………
Well as long as one is young and health…But the baby boomers will surely release when they hit there retierment that none of the medical or pension promises they have been paying for decades are all spent…
Then we'll get some sweet civil unrest for sure
I am employed and I am sad to see the recession. I encourage my family to give a helping hands to those less fortunate in our community. I pray that The Obama administration to please do the right thing for all American and stop plying the politics of class warfare, stop re-creating the "cultural and social animosity and revolution" that would further divide our country and our people. President Obama has won the Presidency, please do t=right with this term and stop worrying about catering to special interest groups that will assure him another term. Do right to ALL Americans.
Please stop blaming others. It is about time to live within our means. The Obama administration won the election, has had the support of the majority of American and Congress, stop blaming the last 8 years because it only shows the administration's lack of confidence, incompetency. Stop whining and should start working honestly for ALL Americans, not the celebrity and the lobbyists who donated $$ for the last election.
The problem is the American people. you guys want quick money. You all want to be rich without putting in any effort. Immigrants of today from asia or from the past from europe worked their ass off to make a living. they i not look for support from the govt, they educated themselves and got ahead.
You guys blame asia for your problems but ti is your greed for cheaper products that pushed companies to get stuff made in Asia. Why dont you go buy more expensive stuff made in the USA and avoid made in china or made in india products.
also for once try going to graduate school if you can instead of finishing high school and asking for 6 figure salaries.The american dream is still alive for people who plan to work hard. Are you one of them? i believe not if you are not asian!!!
Dump BIG BUSINESSES who are the root cause of the problems we are facing. They move factories overseas and move white collar jobs through outsourcing. Who benefits…just a few top executives that make millions in salaries and bonuses.
Support your Local community based businesses that create local jobs and generate local taxes.
Hit them where it hurts most…stop patronizing their products or services.
This is the only way America is going to be saved from the downward spiral.
For years I stayed in the USAF. Many guys (who did 4 years and got out) used to tell me I only stayed in because I could not make it in the "real world".
Well now I am retired with a decent pension, enough to keep up my mortgage, van payment and food on the table.
How's the "real world" working out for you folks?
Hey, Give Travis a break, I know Travis, he makes one hell of a good Pizza, even throws in some extra cheese sometimes. Great Job Travis.
For the entire US economy to slide so dramatically in such a short time, it almost has to be orchestrated by those in power. Remember, we have implemented every single plan that Obama has proposed, and things have just steadily gotten worse and worse. He stands to gain incredible power if the country is thrown into a state of chaos; and that's truly his ultimate goal here. He does not wish to govern – he wants to rule. Never forget that. In the meantime, stand united; because divided, we shall certainly fall.
Stop subsidizing oil!
Build hydrogen fuel cells, hydrogen engines. Refuel America
1. It creates manufacturing jobs, it creates infrastructure jobs. Real long-term job creation will pull us out of the recession/depression. If we do it right, ie the most efficiently, we can export it.
2. Stop using oil for cars and trucks, it will reverse our trade deficit. We are net importers, we want to be net exporters.
3. It will strengthen the dollar, not make it a poorer relative of the peso.
4. Distilled water comes out of the tailpipe, us distilled water, not CO2, Not carbon monoxide. Its environmentally much more friendlier.
5. Generate the hydrogen via geo-thermal, wind and solar powered. Greener energy.
6. Why are we still working harder, for less, sending our increasingly worthless dollars overseas to many of our potential and outright enemies, who then use our dollars for weapons of mass destruction, further nuclear polifiration, forment maxist-populist revolutionary trouble for the rest of the world.
GET OFF OIL ASAP. We are already back at $3.00/gal. Soon back to $4.00/gal?
History is already repeating itself, and American Politicians just do not get it. They are too easily bought by lobbyist. This greed and corruption is the countries biggist problem.
The smart guys who have run this clown act for the last few months don't have a clue how to fix it. They're winging it. This reads like a book I read years ago called A Distant Crossing. Fiction becomes fact.
Stop believing in Uncle Sam or Shall I say Uncle Madoff!
At first, they rob us by taxing us. Then, for years, Uncle Sam has lied to us to put away our hard earned money to a pyramid scheme called Social Security. Just like Bernie Maddoff, Uncle Sam led us to believe that if each of us keep contributing part of our income to the system, we will be taken care of when we retire. But, just like Uncle Madoff, the pyramid scheme works only where contributions exceed to distributions. As the baby boomer generation retires which easily outnumber the younger generation, the system will sure to collapse, unless future generation will be forced to contribute even larger sum of their hard earned income to the broken system. How ironic, when Uncle Madoff got punished for orchestrating the scheme while Uncle Sam promotes it as “The Social Security”. Then, Uncle Sam encourages us set up all these complicated 401K plan, Roth IRA, Traditional IRA, Rollover IRA, etc., each is set up separately to allow the brokerage earn more commissions, while incurring more costs to us, not to say making our life more complicated. Next, they set the super low interest rate to entice us to put ourselves in debt, basically selling our future to the financial institutions and the future of this country to foreign governments who finance our debts. When we are in debt, they say we should not live beyond our mean. Who is the one that cause the crisis happen in the first place? Cheap credit anyone? The FED? Worst, they led us to believe that buying a home and taking on huge mortgage debt for 30 years is a good investment. I mean big THREE ZERO years, which is a THREE DECADE LONG. Not only do you sell your self to the devil and giving up your freedom and peace of mind, you have to pay interests, property taxes, HOA due (if any), insurance, all add up to your monthly expenses. They even misled us to believe that the interests are low that we should take on more debts. For examples, at 4.75% interest rate for a 30-year mortgage, for every $100,000 loan you take on, you are actually paying an additional $88K alone just for interest for the life of the loan; adding close costs, monthly insurance, association dues, yearly property taxes, you can easily pay over two times the amount of loan you take over the life of the loan. This doesn’t include the worry of not being able to meet your monthly payment and have the bank knock on your door and kick you out and lost all or part of the equity due to foreclosure, plus a host of other complicated paperwork and rules to adhere to. Why? Why make our life complicated? If you were to rent and put away those hard earned money as savings, not only will you have peace of mind, you will also have more rainy cash available. Even, when you get laid off, your savings are sure to protect you from all the stress and problem. If the government really cares for us, they should establish affordable housing, rent control, and keep inflation low, rather than keep pushing for illusionary growth, unrealistic house prices and inflation. So, stop believing in what Uncle Sam is preaching. Stop spending and start saving. Good luck.
Sorry if you are not working, I am thinking about quiting my job. Why? Because I am tired of paying the IRS! what is the point of working when half of your paycheck is going to taxes? why work? Better to save your gas money, cut wood, grow your own food and pay no taxes and live off the land. I suspect that many people are running the same numbers that I am if they are the same tax bracket as I am, worse, we are thinking about raising the tax rate on those that are paying way more then thier fair share. To all those high income people I say STOP WORKING! Why pay for GM Jets and AIG Party Funds. Drop out, live cheap, pay no taxes, enjoy your life. Dont watch the news!
I know in New York a lot of the employers are using a "work share" program where the employer reduces the hours on the majority of the employers and then the works claim unemployment for the balance of the week. It allows employers to keep all of its workers and not lay anyone off and yet still allow the employees to keep collecting 85-95% of their normal pay.
I cried when I read this article. Not cause of the 16.4% U-6 rate (btw I think real unemployment is closer to 20%, counting out of work non-citizens, self-employed, and furloughs), but because I'm finally reading HONEST reporting from a major news network.
thank you!
Mark in St. Louis. How many corporations made profits last year? Does that explain your 1 in 3 number?
Things are bad. It is hitting industries that were considered "recession proof". Some one made this point already but a large portion of the blame can be put on the American Corporations. They are so financially driven, so concerned with meeting their financial goals that people are no longer people but become dollar figures.
Obama is in trouble. I'll give him he has to be optimistic in this situation, but you also have to at some point be realistic. Things are not getting better.
First, I find it interesting that all the optimistic posts are from folks that have what they think is a stable job or field of work. Comments from Travis and Elizabeth reflect denial of the facts.
"Elizabeth (below) demonstrates the Ostrich mentality well. This form of denial and wishful thinking is exactly what got us into the bloated government entitlement collapse to begin with." Posted By John Galt, Galt’s Gulch CO: June 8, 2009 1:37 pm
I think John hit the nail on the head with his short post. And people like Travis… well, lets just say they are headed for a rude awakening. I think most people here do indeed get it, that this is not near being over. I am fortunate enough to be successfully self employed for the moment, but I realize that could change in an instant.
We are indeed headed toward another depression whether you want to admit it or not. The first Great depression had a war that got Americans out of the unemployment mess. America is in a meltdown that no war will relieve or save. Never before have so many sectors collapsed so fast. You have companies, organizations, and banks that survived through TWO World Wars, Several recessions, and the Great Depression,.. now entering bankruptcy or worse yet, disappearing forever. And yet the stock market seems be lead by analysts who believe that things are headed towards recovery, despite the fact that THERE ARE NO REAL JOBS. Joe Blow who used to make $60k for the parts or service sector can't work at Walmart forever. But at least he's not counted in the 9.4% government sanctioned unemployment rate because he has a job!
As stated several times by other posters, most of America's jobs are now overseas and we can't get them back. Let me ask you, when was the last time you called Dell, AT&T, Sprint, your bank, or any other customer service line and didn't get a foreigner? When was the last time you saw a shirt, a shoe, a computer, a TV or ANY electronic device that was 100% made in America? Did you know that Made in Mexico and Made in Canada qualifies as "Made in America"? America's #1 retailer, Walmart, has more items made in China than China itself has! Name ten items Made in China, and then name ten items made in the U.S.A.
And don't get me started on the housing mess. Yeah, houses are getting bought as soon as they hit the market because the few folks who do have money are snapping up homes thoughout the country, thinking they are investing and they will recoup their loss by renting them out. The problem is who is going to rent when they don't have a job? If Joe couldn't afford a $1200 a month mortgage, how will he afford a $1200 rent bill? I see this happenening everywhere in my area, rental homes sitting with no one inside.
We as a society were brainwashed into thinking that Credit was so important to have, that "in case of emergency, break glass" and our credit would save us. Now you have people with perfect credit who can't buy a home or a car.
And the government is now worried that people are saving up and not spending. Of course they are saving up, spending everything on items made in China is what helped get America in this mess!
Credit is dead and Cash is King, at least for a while…
The whole system is collapsing as fortold in the Bible. "…they will throw their silver into the streets.." Ezekiel 7:19.
Listening to Travis (AKA The Babbit circa 1920's…pls read it) tell us about his high self-esteem and super employability means little in the context of what has happened in our economy. The vast majority of people that lose their jobs are not culpable, nor lazy or deserving either. A simply ridiculous assumption.
Fact is, I see more kindness and understanding in people in my corner of the world as a result of the harsh financial realities that have many families struggling financially in response to job loss and financial hardship.
The truth, of course, is that the economy in the US is 100 percent controlled. Unfortunately, it is controlled to rob the public and enrich corrupt special interests both domestic and foreign.
The United States has achieved the ultimate in a 100 percent pure corrupt government and industry. How to correct the problem?
Travis,
Exactly what did your comments add? I partied my way through school, on full scholarship by the way, graduated with two degrees and honors (maybe you just weren't smart enough to handle both?), and still got laid off.
It's hard out there for people, maybe what you forgot to get while you were buying planes and motorcycles is a little thing called empathy and compassion for your fellow man. You don't know everybody circumstances and you sound like a real tool. Keep your heads up everybody else, you'll pull through this stronger than before. Travis, karma is a unfriendly woman, and she'll meet you before too long.
"…At some point automation and technology means less jobs with ever more product. Sure it costs money to build those systems but they always generate fewer jobs than they replaced. If they didn’t we wouldn’t implement them…".
This has been proven to not be true, time and again. Automation has displaced jobs, but created far more. Just look at the job markets, their numbers, and the expanding population all working with the advent of PC's, ever better computer systems, and all sorts of new technology. The technology, and jobs, is ever expanding. It's the factory jobs that are being lost.
I always get a kick out of the category "wants to work but not interested or motivated enough to look for a job!"
Freely translated that means "too lazy to work and therefore not really employable." They should NOT be included in the unemployed statistics!
To Travis Denver CO (below): Funny I went to school and did not party or even drink a sip of alcohol. I studied hard for a degree just like you. Too bad I choose the wrong industry I guess (chemistry). I have worked two jobs for two years in order to pay off the debt I acquired from being laid off a couple of years back. Maybe you can help me: I am just too lazy or not smart enough to chose the right field?
We should all know better than to listen to the media when it comes reports on the recession. They keep saying, "Unemployment is down for this month blah blah…" but that doesn't mean squat for many of us who are still out of a job fighting for our home, car, food, etc.
The government thinks that giving companies billions of dollars will help, but they actually need to give the consumers this money. Wipe out our debts so that we can kick-start the economy by giving us the ability to spend. Consumers want to save right now b/c the cost of everything is too high. The middle-class family is becoming lower-class. Healthcare is too expensive to afford on our own–can be around $500/month for a single, healthy individual. Now they want to introduce higher taxes?
Companies are also looking overseas to higher employees. When this happens, companies should be taxed significantly b/c American citizens are losing out on employment opportunities.
This recession is not getting any better, by no means. It's going to get much worse. Unfortunately, it's going to hurt many of us hard-working citizens.
What is amazing is that we have the resources to cure diseases and feed hungry people, but we are so tied up with what we have and don't have that our values are completely in the toilet. What is even more amazing is that money doesn't really have value. It has intrinsic value, but it has to be converted to become truly valuable. How can money be worth anything if I get paid with direct deposit and pay with my debit card for everything? And I earn interest payments that are direct deposited. I never have cash! What about this aspect of money? Why does that not factor in to the supply? Its a hoax.
Several contributors have mentioned the detrimental impact of outsourcing on economy and unemployment. Some believe that this is due to the high corporate taxes. The problem with such statement is that large corporations generating billions of revenues pay only minimal taxes as most of them are incorporated in tax havens (for instance, Halliburton, the largest military contractor in Iraq announced in 2007 its move to Dubai; Accenture recently announced a move from Bermuda to Ireland).
Others believe it is due to expensive labor. While this is probably true one must also pay attention to the source of such statements – top corporate management. The problem is that the compensation of the top management is not only in sharp contrast with their ideology of cost cutting but also very often derived from how many jobs they outsource. The ratio between compensation of average worker and CEO reaches staggering 1:300.
http://www.opednews.com/colson042904_CEO_pay_heist.htm
Most of the time, such compensation is explained as in line with market and competition for talents. Everyone could see what these talents achieved in the past few years. The banking sector is essentially insolvent. The auto industry is bankrupt. The truth is that outsourcing is a way for top management to siphon remaining accumulated wealth from workers and middle class into their pockets via exploiting cheap labour and selling products for multiples of costs in the West.
http://spot.colorado.edu/~shortk/nike.html
These are the people who are selling out workers and middle class (basically, most of the population) by pretending they have “special” qualities when in fact they simply keep exploiting reserves of desperate workers in developing countries.
http://www.shadowstats.com has indicated these stats for several years now, calculated using the methods used pre-Bush and pre-Clinton. One thing I noticed in these comments is people claiming that this is due to one party or the other. I think they are both the same, owned by the banks. Therefore, I see no fix coming out of the current administration, nor did I expect one from the last administration. I think their trick is to make us think there is a difference between them…
What about the statistic that shows people who were laid off, filed for unemployment but were denied because they decided to make a better life and go back to college to finish a degree? How does one make it when rules like this exist in our world today?
"I'm sorry sir, you went back to school full time, no unemployment benefit for you. Besides, we decided to give your benefit to the guy behind you who needs it for his meth addiction."
I have a job and am thankful. Thankful that I come to work everyday and don't feel I am over or underpaid. Work 50 or so hours a week and spend my money doing things and save rather than all the junk I can buy and a new car every couple of years.
Illegals improve our economy. Specifically in home construction. Much lower cost means we could afford more. To bad the banks, builders and especially the buyers wouldn't live with what they could afford. Gave the builders the ability to increase the sell price while their costs for labor went down. All the extra material's costs went up for all the extras we soon wouldn't be able to afford. What a drag. If we allowed more immigration of lower paid workers and stop bringing in the highest paid workers, especially in technical industries our economy would improve. People would choose education first and lower paying jobs second.
Companies don't move outside the US because of taxes. The corporate tax rate has declined for years. They go after the cheap highly educated workers. They can pay one fifth the amount an American earns to an East Indian because that buys a lot in India. We all want to keep up with the Jones'. We blame the media for not telling us the truth when we don't investigate anything ourselves. The information is out there. You just aren't being spoonfed what you want to hear. Educate yourself and others aroound you. Blame no one but yourself for not knowing and you'll surprise yourself how well you learn. I pay taxes and am good with that. Crap happens and someday I'll need help. Just don't waste it killong other people because you're scared of every one.
Does anyone really understand what this means? The US yuppie lifestyle is gone. We are headed straight to the bottom of the fish barrel, weighted by our chains of debt. Why does nobody understand that this is by design, that this is the "race to the bottom", the transfer of power to the Middle East and China? M.E. makes money off the oil needed by the biggest manufacturing country in the world- China. China is now the 800-lb. gorilla, a title that used to be ours.
Also, if the Federal tax rate is 35%, then the sales tax is 9%, and the state income tax is 10% or more (think the "Peoples' Republic of California"), then add in the taxes on gasoline, not to mention FICA, Socialist Security, and every other tax that they can levy on you and your $100,000 salary, it's real easy to run out of money before running out of month. Then add in the fact that the gubmint printed up $11TRILLION dollars to "inject" into the economy, you dollar is worth less than half what it was just a few short years ago!! With the gubmint taking over half in states like the PRC, your $100k might net you $35k after taxes and fees. Now pay for your house, your car note, your phone, interweb service, your food, your clothing and see how far that gets you. Not very.
This is a planned event, make no mistake, to destroy the US and bring to power the New World Order. Obama is not the puppeteer in this scenario, the real culprits are the monied elite, who PUT President God in power to carry out their agenda.
There won't be any more jobs for a long time. People need to realize that this is the Greatest Depression. With no more manufacturing base, we are dead to the world- we cannot buy their manufactured goods if we don't have jobs, and a service-based economy just isn't going to cut it.
I'm thinking we really NEED to crash hard in order to wake up and realize what the "suits" and "bankers" have done in subverting "our" government. We need to replace them, one and all, before they "outsource" our government to China, Pakistan, Afghanistan, Iraq, or whoever the lowest bidder is. Sad thing is, this has largely happened by proxy right under our noses…
Id like to see them use a statistic that involves dollars or something. All jobs are NOT created equal. Ive decided to try my hand at consulting since I was laid off last November, and while Im making a passing living, its nowhere NEAR what I used to make.
We simply need to change rules. For example, IBM kicked out lots of US employess and hired cheaper labor at India. So if Government changes rules that prevent outsourcing company bid on government contracts and remove the tax incentive, then thry will hire more American.
Its a severe recession. I am sure in the 4+ recessions prior to 1994 people were under employed, marginally attached and not fully employed. Lets only apply it now? Why? Great cross section. I love how people (the media) try and come up more creative ways to create a panic and tell us something we already know. Who is this twit anyway? You cannot use the U-6 rate now and not apply it to recessions prior to 1994. Gee I wonder if you started tracking the U-6 from 1890 I bet it would tell the same story then as it does now, its a bad recession or even a depression. Who does it help to make things look worse? All these stats are just another way for the media to create shock and awe in an attempt to be noticed. It is a bad recession, we get it.
To see the base reason for our problems, you need to look at big business in this country and their desire to create profits quarter by quarter. Instead of a long term view, and without a social concious on what is good for this country, they continue to create great wealth for themsleves with little regard for the working class or the country in general. Meanwhile our Government must pick up the tab to support a slowly sinking working class, that without Government suppoprt would quit possibly turn to civil unrest to survive.
That Government aid comes out of those working class that need the money through taxes: a slight of hand scheme of sorts.
We need to step back and refocus on what is good for America in the long term, and quit acting like the rich uncle who showers everyone with money.
After all, the rich uncle's pockets are now empty.
Everyone keeps forgetting that we have been aggressively automating everything. The company I work for has cut its distribution work force by over 50 % in the last 7 years and does 300 percent as much volume. At some point automation and technology means less jobs with ever more product.
Sure it costs money to build those systems but they always generate fewer jobs than they replaced. If they didn't we wouldn't implement them
Travis, it could be argued that people who buy airplanes and BMW's are generally "Hollywood Types"…and by the way, hard work does not always automatically result in riches…You are mostly lucky (not smart that is for sure)and you would be wise to take a more human approach to you fellow Americans. You'll need someone to take care of all those "things" you need to make you think you are better than everyone else. hoep you don't get a visit from Karma.
I work for the largest communications company in America. While we are daily laying off good hardworking IT people, we are hiring 1H Visa people to take their jobs from India. We have also shift thousands and thousands of jobs off shore to India both directly and indirectly through third party companies. If you want to know what is wrong with the job situation in American, it isn't the American worker… it is the American corporations.
Tom in Lancing. Your statement about US corporations paying the "highest corporate income tax" may be correct with a very narrow interpretation. In fact only 1 in 3 US corporations paid any corporate earnings taxes.
I have offered two people jobs in the past month who refused because they could make more on unemployment. Even though the offer was for more money than they made prior to becoming unemployed.
Both were sales people who had made decent money over two quarters ago. Can't really blame them for sitting on unemployment. Once it runs out then they can seriously look.
Everything will come full circle. In the 70's & 80's everything we bought was made in Japan. Labor became too expensive their so manufacturing moved to China. Twenty years from now when the China will be too expensive and then it's too parts of Latin America. By then, the US will bea 3rd world economy…everything will come back to be made here..and the vicious cylce will repeat itself over and over again.
dear travis..happy you're employed after working so hard thru school, etc. etc. etc. . . i'm an MIT grad, my cousin is an RPI grad, and my sister's fiance is a UCLA grad. . .we are all unemployed. . . our fault?. . . accordng to you, yes. . . we're LAZY Americans. . . oh, well. . . i s'pose we chose the wrong fields of study. . . you probl'y have an answer for that one, too. . . i do agree with you in one respect, tho'. . . there are plenty of lazy and irresponsible people out there who are blaming everyone under the sun but themselves. . . just not all of us, travis, just not all of us. . .
I think a very significant portion of unemployed people will remain for good. There are simply too few tasks left because of outsourcing and importing everything. Businesses here will make enough profit doing that, but it will not create the jobs we used to have (even recently).
In addition, the profile of the American workforce is not set-up for the future. Every year tens of thousands of well educated ressources are imported, especially in scientific disciplines (including computer science). Americans can't afford to keep up in education anymore, not enough money combined with skyrocketing education costs and even those jobs are outsourced.
The non-academic workforce is attacked by foreign companies operating under very different rules, arbitrary currency values and also by illegal work.
We need "fair trade", not "free trade", otherwise we have to compete with foreign sweatshops and currencies. Looks like we'll be the new bicycle and straw hat nation.
This statistic isn't useful without covering the years where unemployment, inflation and mortgage rates were well over 10%. The number of people not working and not looking, but might take a job if someone sought them out and gave them one is menaingless.
A major contributor to our growing unemployment problem is directly related to our enormous tax rates. We currently have the second highest corporate tax rate in the world, just after Japan. It is correct in saying that we are losing jobs due to outsourcing, and that many of these jobs are going to low-wage countries such as India and China, however, a coniderabel amount of jobs are also going to Canada and Europe. What people often neglect to consider is that wages are based on productivity, which the United States has a definite advantage in. However, due to our high tax rates, employers are forced to find alternatives to labor through activities such as outsourcing. Considering that fact that tax rate in places like Ireland is around 10% compared to the U.S. 40%, show why the U.S. is losing many of its software and technology job, and companies like HP, Dell, and Apple are building new facilities and sending jobs there. As a general comparison, the average tax rates throughout Europe are 1/2 to 2/3 that of the U.S., showing we need to focus on this area. Modern econometric research shows that on average, a 10% point increase in the tax rates, creats a 5% point increase in the unemployment rate (Tabelini 2004). It concerns me that this problem has yet to be adressed in congress. In fact, with our current spending craze, the only way to get out of debt will be to raise taxes even more, causing more jobs to hemorage from our economy.
The government has altered true unemployment figures over the last ten years or so to hide the effects of diasterous economic policies. These failed policies include offshoring of jobs and unrestricted immigration. Lack of banking and Wall Street restrictions and guidelines. Deregulation. Enormous and continuing US deficits.Dollar depreciation.Two wars.The list goes on and on. Now the states and the Fed realize what they have done because, guess what, no increasing tax base! You can't squeeze blood from a turnip.
We as Americans have pretty much priced ourselves right out of work, the sad thing is it's not entirely our fault. The old saying "greed is a bottomless pit" really applies here. Why is it that over the last 10 years we have seen over a 300% increase in most services (gas,foods,electric)things necessary for us to continue, but each year most of us stuck with a 5-8% raise.I'm really surprised it has taken this long for companies to realize that they can #1 outsource and by doing that save an enourmous amount of money #2 continue to raise the price of thier product and know we will still find a way to pay for it,when does this end.What technology in making electric or producing fuel over the last 10 years has justified over a 300% increase
A reliable method of estimating unemployment in the US was not developed until 1940, so during the Great Depression the full extent of the unemployment problem was largely unknown, except in a qualitative way. (Elizabeth's wish to fly through this thing blind was followed during the Great Depression and we saw how well that worked out.) The peak unemployment of 24.9% was developed after the fact by Stanley Lebergott a young economist in the BLS who went on to become one of America's premier economic historians at Wesleyan University. His estimates have been accepted by the BLS and are now quoted as the official BLS figures.
Lebergott did not count a person employed if they worked in any of the "make work" government programs "because to count a short-term, make-work project as a real job was to mask the anxiety of one who really didn't have regular work with long-term prospects." Regular work generates taxes that support government, while government employment, particularly make-work, acts as overhead cost, consuming tax revenue.
If we were to use the same methodology today as Lebergott used to generate the peak 24.9% unemployment estimate, our current unemployment figures would be 5 to 10% higher. Conversly, if we applied our current methodology to the peak 24.9% figure, it would be 5 to 10% lower, perhaps in the 15 to 20% range.
Michael Darby of UCLA has argued that "make-work" should be counted and has published work comparing his assumptions to the officially accepted Lebergott estimates. Darby's work estimates unemployment peaked at 16% in 1934 but did not go below 9% until the US was gearing up of WWII.
Many of the social welfare programs we have today were unknown during the Great Depression and help soften the impact of unemployment somewhat. So even if we use the same assumptions and have the same unemployment percentage, the consequences then were much worse without the safety nets.
We just did a mass hiring in India!
Sorry America,I want to help. My company will not allow me to hire in the US. If I want to hire in the US, I have to provide a reason to senior management for the add to staff requisition.
It just doesn't make sense…..seeing as we do payroll processing in the US.
Greed…just damn frickin' greed!
I have a question. What would happen if the 43% of the people who work to support the 57% of the people who choose not to work, quit? Even for a day, a sick out for this summer?
I've read in the comments about the depression taking x # of years to recover job loss. It would have corrected itself in time. The government intervened and prolonged the Depression/Recession. I belive the government should have stepped back this time as well.
Every one talked about the problems and frustration. I am going to try to dissect the problems and point in direction of solution.
Two essential components of economy ie manufacturing and service industry.
One of the big retail giant's annual revenue is approximately 400 Billion. Approximately 90% of products on shelf in terms of revenue are made in largely populous country outside USA except some food, personal hygiene and grocceries!
This include just one retailer. Now add all the retailers and calculate revenue and extrapolate that many jobs in that country. Even if 20% of those goods were produced in this country the unemployment problem probably would be wiped out.
People talked on service sector in particular IT services. Reality is that total import of IT services after accounting for export from here worldwide may be less than 40 Billion. Compare it to only one store revenue of 400 Billion.
Get real and then understand where and in which area actual jobs have been lost. Manufacturing in fact has the highest potential to generate jobs here but nobody talks because nobody knows.
when was the last time you heard of layoffs at the TV media outlets? (CNN,FOX, MSNBC,etc) I see the reporters with sad faces telling America about job losses, just as they are about to go on vacaction.
Besides this story, i have not heard this statistic reported on. The mainstream media are in Obama's pocket, they report on what they are told to report on. Which is why people are starting to realize they have ZERO credibility.
What got us in this mess — was 8 years of Republican corruption and neglect. The arrogant disdain for the American family and worker is evident in the outsourcing of millions of good jobs to India and Asia. Nothing is made in America anymore. –Of course there are no jobs now!
Pray that President Obama can heal America — after the Bush-Cheney disaster.
Isn't one point of a commonly-measured statistic to provide comparability?
Yes, I get it – the "real" unemployment # is higher than the 9.4%. So what?! It's a "teen" in economic stat history (only 15 years old). How does this number look back to the 20's and 30's?
Elizabeth – are you actually suggesting the news should not report facts just because it's bad? The media passes along just about everything the government throws out with barely a peep. Inflation, GDP, and employment numbers are all misrepresented for political purposes. If we had more realistic reporting, people would be better informed and in better shape.
It's even worse than U6. About 125,000 jobs have to be created every month just to keep up with population growth.
Travis (down) thinks that his degrees would save him if the US economy keeps deteriorating and that he is better than everyone else just cause he got three degrees. Well Travis, if all the other Americans cannot find jobs and hence their spending power decreases, then all the companies that are currently offering you jobs will close down, and you should get ready to start wrapping burgers with your degrees at McD's.
It's all ok now that the spendulus has been pushed through…Just keep drinking the media kool-aid…I am sure there are more "promises" coming down the pipe…Barack, Nancy and Harry will save you…just give it time..
Has anyone seen the report I paid for about how the cow smell is affecting the people of Iowa yet..?? Just want to make sure I am getting my value for my tax dollar..
Are americans such fools to read and write these kind of articles , u are basically not unemployed but its just that the case is that your jobs have been shiped to China and India ,imagine if you ship just 1 % of jobs required by china your unemploment rate would go up by 5-8 %
Here's the deal with the economy. A lot of people are out of work because many jobs (computer, call center and manufacturing) have gone overseas where labor is cheaper.
This trend will continue.
The US pays some of the highest wages in the world. It also charges some of the highest prices for merchandise in the world.
Eventually what will happen is that there will be so many people out of work that salaries will have to come down. Eventually, prices for everything (merchandise, food and rent) will also come down to balance it all out.
When that happens, some jobs will shift back to the USA as it will no longer be cost effective to ship jobs overseas.
Eventually, this 'correction' will cause us (the USA) to be on a level playing field with economy in the rest of the world.
I was fortunate enough to find another job (it took 4 months). I really feel for those that are out of work and are suffering now.
For Elizabeth, talking about it helps. I was VERY depressed when I was out of work and not able to support my family. I thought grave thoughts. I was thankful to have others to talk with about it, if for no other reason than to know that I was not alone and that getting laid off wasn't necessarily a fault of mine.
Hey Tired American…
Did this crisis and the government's intervention begin the third week in January?
Oh, that's right. The New Republican Agenda: Pretend the Bush years didn't happen.
Statistics are Made to Lie – The first lesson in Stat 101. Obama reported today an improvement in the number of lost jobs. What? If you start with 100 jobs this week and you lose 10 you have lost 10% of the jobs. Next week if you lose 9 and say this is an improvement, you need to return to math class. You actually lost another 10%.
Mark brings up a good point in saying "someone needs to…relate this to the downturns of the 30’s, 70’s 80’s and early 90’s." The common denominator here is the Fed artificially lowering the interest rate during those periods. It's interesting to note how all these downturns became cyclical AFTER the Federal Reserve came into existence.
Rush Limbaugh listeners – please check the facts and stop quoting your radio-host hero here while trying to talk down the economy. He is not an expert in the economy – for God’s sake the guy is a college drop-out and you all just quoting him here. The situation is bad, but it is improving. It took 8 yrs of horrible policies to take us here – it will take more than 6 months to pull us out. It is time for Americans to learn about patience. After all we have to pay what we did to our country by electing Bush twice.
I agree with Greg Stangler, Isanti, MN.: All of the Public jobs should also be counted, those working for the Government(s)should also be listed as unemployed since they can not generate enough in taxes to pay for their jobs.
I believe i read a CNN article that stated only 43 % of the population actually has a job, everyone else is living off some type of Government entiltlement program. ( most are on SS and retired)
To the fine gentleman with degrees, who didnt party in school and who "knows what the heck he's doing."
Please share with us "when" you went to school, what job or "jobs" you worked to put yourself through school, how you made "ends" meet prior to your career as a much needed and sought after citizen of our great nation.
Surely there were no grants, trusts, scholorships envolved, correct? This was all accomplished by your own means and thus by staying "sober' in school?
I think that it is a "right" to live without squalar,poverty and all the other trappings of our Roman-based society. I also feel that a person must 'work" at whatever, wehter it be a job, a degree, and dream-one must put out to get out as it were.
There are "lazy" people, yes, but this is not from the media, or anyhting else other than the natural human instinct left over from the good 'ol Garden of Eden I would imagine. Why would anyone want to work if they can avoid it? it is as natural a trait as war, deceit, love, etc.
As long as man, in whatever nation, insists on spending the life experience doing nothing but accumilating "things", "nations", "people"etc, then my dear well educated ever so sought after human, all that we are is a great waste.
Enjoy your toys. But remember, "All glory is fleeting."
Scott Travison…who has no degree, who had his first job at age 8, who doesnt spend his life collecting…living is much better.
Finally someone who is aware of what's going on and writing about it! They (goverment) only tell us what we want to hear. They need to be upfront and let the ratings fall. Look what happened to Corp America when they fudged with numbers and stats. It's only going to get worse….
Someone commented "The other number that isn’t being reported is the number of illegal aliens that are no longer employed. Given the 12 -13 million illegals that have been reported in the country and the high number of them working in the consruction industry it’s likely there are millions of illegals that are no longer employed." Don't forget the mini India that live here on work visas. As far as all the "illegals", don't forget you are getting taxed to help pay for their free healthcare! We were country that has moved from a production to a "Service" industry, but now we outsource the service. What jobs will be left as we continue to give it all away. The car industry's demise, aside from a lack of forward thinking of execs, is mostly due to the cost incurred by UNION employees. Americans need to stop feeling their entitled to everything and accept that certain jobs should only make certain money (garbage men shouldn't get paid $80,000/yr). If you can get a better job, go get it. Stop making it so cost prohibitive for companies to do business here due to the costs of paying people all these benefits to do remedial jobs. There use to be a time when you use to have to work hard to get more (be it through education to get a better job, or actually at work to get a better paying position), but because of unions more and more people have realized they can live comfortably doing minimal and retire with better benefits the those in corporate America (especially as OBAMA keeps tying to get in the pockets of those who are trying get themselves to a better place).
And for those who think media should say less or more, just think of one thing, if everyone is losing their jobs and can’t pay their mortgages and leverage their credit cards even more…when will that bubble pop? Not too much news out there about all the credit card debt, which you know is just a matter of time before it blows up.
What number will it need to be before people wake up and realize that all of those hollow promises Obama made aren't going to come true and give him the boot he well deserves. He has only made the situation worse by monkeying with the economy and propping up failed corporations. No economy can survive that. You can't spend money you don't have. This service economy that has been falsely supporting the US has finally caught up to us. We need exports, real tangible goods going off shore to bring us out of this. But, due to UAW and like unions, US corporations have been forced to take their manufacturing jobs over seas to reduce labor cost, and all those jobs with it. So now we're left with burger flipping jobs or retail. You all do realize the UAW is a major campaign contributor to Obama right?
"If I was an unemployed person and I was reading about this all the time, I would be discouraged to go out and try to find a job"
Thanks for the innane comment Elizabeth. Welcome to Elizabeth's new America where people don't endeavor to re-invent or otherwise try to improve themselves because it might actually require hard work.
Elizabeth (below) demonstrates the Ostrich mentality well. This form of denial and wishful thinking is exactly what got us into the bloated government entitlement collapse to begin with.
During The Great Depression, it took several years for unemployment to ramp up. At the end of the first year, unemployment was around 9%. At the end of the fourth year, it was about 25%.
In 29-33 Depression, the unemployment figures were aproaching 27, and by some, 29%. U-6, by this articles numbers is at 16.4%. I'll use that as a base line.
Remember that in 1929, Social security and welfare did not exist. The number of government jobs was seriously lower as a percentage of total jobs compared to today. Government jobs consume taxes, not create taxes so these additional jobs need to be added in as well. (these include defense contractors, etc). So where is the real unemplyment figures when comparing apples to apples. I put it closer to 25%.
So at what percent and for how long do these kinds of labor stats need to exist before we are in a depression?
I turn down jobs weekly, but then again, I'm in a field that is extremely hard. I studied hard in college, received a degree that's employable, and have been employed steadily for 20 years at a very good pay rate. American's, for the most part, are a lazy lot these days, and have been conditioned by the media and Hollywood types to believe that "everybody" deserves a high standard of living just because and that its OK to be average. Well life doesn't work that way does it. Instead of "partying" through school, you should have studied; then you too could stay employed and buy airplanes and Italian motorcycles like me. BTW I have degrees in Computer Science, Information Systems and Aeronautical Engineering and I actually know what the heck I'm doing.
As mentioned before, you have to compare apples to apples. Yes, U-6 appears to be high, just like U-3. Percentage wise however, it appears not to have increased more than U-3 since the start of the recession.
I have been looking for work since November 2007. I know of many others who are under-employed. There is very little to be found for employment out there. I bet the real figure should be nearer 20% The reason the government does not show this number is that they do not want to start a panic and cause consumers to cut back more on spending. Being we don't make much of anything when people start cutting back the rest of our service economy crumbles. But in doing this they are marginalizing the true pain that is happeneing to 20% of the workforce. If we come out of this recession in retrospect they will most likely call it a depression. Calling it that now though might in there opinion make things worse.
The situation is scary. I do not see any high impact plans from the government to jump start our economy. They are only thinking of how to stop this meltdown. Although I am fully employed, I am nervous and working much longer hours to keep my job.
I was laid off two months ago I have no job but I am considered “not unemployed" by the Arizona revised statutes. I am coming to find out most people who States are bankrupt are also not getting Federal Unemployment. Colorado is another state where I know friends can't get unemployment. Unemployment data is just another passing fraud.
Thanks for the facts. It's a shame the gov doesn't always tell the truth by making things always looking better than they are.
How about if someone actually told us how bad things are?
I think that all these reporters writing columns and articles about how bad the unemployment and economy really is should just SHUT UP about it already! This U.S. economy isn't going to get any better if the media is bringing out all the negative about everything! There's always negativity about everything. Just leave those numbers alone, stop scaring people, things will eventually get better. If I was an unemployed person and I was reading about this all the time, I would be discouraged to go out and try to find a job.
MEDIA DOES NOT WANT TO TELL PUBLIC HOW BAD IT IS(DEPRESSION)NO JOBS LOW PAY RENTING GOING THROUGH THE ROOF,HOW DO WE SURVIVE!!!!!!!
Why is such news not being broadcast on television and other mass media outlets? It is important for lawmakers, public and stock investors to know the truth.
cnnfn.com always has these fluffy articles and how easy it is once you are unemployed to
start your own business
relocate to another part of the country
use your contacts to get you a job
In the 'real world' the above 3 are impractical & impossible if you are unemployed and don't have six figures in the bank. Even if you were to rent, most owners & property mgmt co's won't rent to someone coming out of state without a job or can show substantial savings, going 'back to school' can be cost prohibitive and the last thing most people need right now is another 'loan' for anything, and your contacts are likely more worried about their own jobs
School let out last Thursday. The only employer hiring is U-Haul. Let the economy fall it will rise up by The American Spirit. The Business of America is Business.
The Solicitor General and President Obama should be booted out on their butts.
How true. After having to stop working as a consultant to be treated for prostate cancer in early 2008, I have been unable to find any comparable work. I'm working part time in a liquor store so I don't show up as unemployed, but take home a whopping $100/week. Hardly enough to live on.
I like that someone is finally saying what the real numbers are. To try to treat the everyday person to spend spend spend to raise the GDP is wrong of our government just like all these bailout are wrong. It the real world and some loose and some win NO MATTER how big or small.
What they are doing for GM and Chrsyler is wrong also. Why should Bondholds loose more then the rest.
David
Hey CNN…. It's about time you started telling people something solid instead of hiding it like others. WHy is that? WHy don't medias tell the people the truth?
The third line from the bottom should read, :The U-6 rate hit 10.9% in August 2008 (Not 2009) and . . . .
Thank you,
pd
If the U-6 rate hit 10.9% in August, 2009, I'm more worried that the author of this article has access to a time machine!
Not a suprise at all,considering how the Govt.likes to manipulate numbers and release info that only helps their agenda,get ready for America the new third world country,lots of poverty and
loss of resources due to overpopulation
and no commonsense!
So when they compare the current unemployment rate with the rate from the Depression, which rates are they using? Are they even comparable numbers?
Don't worry, people are just using credit, severance, HELOC money from 'mom & dad' or handouts to continue spending. All people are concerned about is the latest 'smartphone' or Flat Screen this, blue ray that. I see many 20 somethings out and about during lunch hour in Flip flops & cargo shorts – what 'office' are they working out of??
Last pragraph indicates a number posted in August 2009, which has to be an error since we are not there yet. What is the correct year for that figure? Thanks very much -
finally, a realistic picture of the currrent state of unemployment. the outlook is bleak for those looking to find a position taht pays even half of what they made prior to layoff. and unemployment simply does not pay the bills – even in a modest household!
What about the poor folks that were self-employed and lost thier businesses, but are not eligible for unemployment benefits? They don't show up on any reports.
The other number that isn't being reported is the number of illegal aliens that are no longer employed. Given the 12 -13 million illegals that have been reported in the country and the high number of them working in the consruction industry it's likely there are millions of illegals that are no longer employed.
What about the ranks of the self-employed? Many self-employed people are either not working at all (no work available) or are working less time for less money.
Do these folks get counted? It seems to me most stats miss the self-employed.
What's more, most self-employed folks are not able to collect unemployment or get help from the government to pay their health insurance.
I'd like to see some research about the impact of the recession on the ranks of the self-employed, and the impact their financial condition has on the economy.
To get an accurate number you would also have to factor in the underground (off the books) community. There are many people at least in my community who work for cash unreported income. These usually are somewhat lower paying jobs.
Unfortunately, we have a long way to go before we get back to a stable economy; even after these unemployment numbers subside, these people will still be out of work, as the economy will continue to shrink for several more years. Banks still have issues, which need to be resolved before we can get back on track.
I think if you are going to be accurate you also have to take into account those working off the books. It is not uncommon for someone on unemployment to also have an off the books jobs.
The US is getting to a point where we all need to 'rethink' employment, hours, etc.
The main issue affecting everyone is just the absurd prices of houses and how much of take home salary is going into a house payment. Get housing down to affordable levels again (pre 2001) and people will be able to spend their disposable income on other things in the economy and remain in their homes with cheaper mortgages.
The economists and government are making this way harder then it is. Reign in credit, make available personal credit no more then 10% of your take home salary (not including school loan, car loan or house loan), and make mortgage payments no more then 35% of take home income of the family.
Worse than you think?? My wife has been looking for a job for over 2 years. At first she started looking for jobs like her former job (IT) and then started looking for anything. Guess what, she was either over qualified, too old or just not the right fit. Things are bad, really bad!!
Employment statistics are always a lagging indicator. To relate unemployment statistics with the existence of green shoots is not a good measure.
We were promised by our Congress and our President that the bailouts were necessary to save main street. Well the only saving I see are the fat cat insiders of Wall Street, Banking, Insurance (AIG), Auto Industry, lobbyists, and other insider Government executives I(congrees), who have saved their big fat bonus checks.
This recession was caused by the greed of corportate management gone wrong, and who pays the price the honest working American citizens thats who!
Wow! Finally an honest artcle about the way things really are in this screwed up country. Give this woman a raise! Please!
The stat isn't old enough to give us historical perspective. Someone needs to find a way to relate this to the downturns of the 30's, 70's 80's and early 90's for this number to have relevance.
Your article is very misleading. You only have 15 years of data on U6 unemployment to look back on and until this latest crisis, employment had been fairly strong since 1994.
You need to compare apples to apples. Don't claim U6 unemployment is so high when you can't even compare it to the last comparable recession of the early 1980's.
One in ten person out of emplyment is a real bad thing and the whole trouble is that the job losses make more people lose jobs ie its vicious circle but the encouraging point is that jobless start attmpting to creat/find jos that were not there. The American are good at taking jobs that come their way and this is a good thing.
Larry in Allentown, PA has it right, the course we're on cannot be "fixed" it must run it's course…Many good thinking citizen's here, truly one of the best, thought worthly blogs…we are 6 inches from the edge, and with all the issue's faceing the human race, from honey bees, to oil, to 60,000 nucular warheads…..it's not going too take much to push us over…I have hope! but no faith, the dream I grew up beliving in is dead, now it's about surviving….good luck to all of you, and your families, we will all need it sooner than later….the worst is yet to come, and sadly, we'll all live to see it…bob