“According to the government’s logic if they have never had a job, then they cannot be unemployed. New grads don’t show up on the statistics.”
Nonsense. The Current Population Survey asks people if they are actively looking for work. If they are, they are considered unemployed even if they are newly minted college grads. Their previous work experience is completely irrelevant in determining whether they are unemployed at the time of the survey. http://www.bls.gov/cps/cps_htgm.htm
Then how does that jibe with people running out of unemployment no longer being counted? I’m sure some of those people are looking for work still.