Skip to comments.The Real Unemployment Rate (What would the rate be if people who want a job entered the workforce?)
Posted on 10/08/2012 6:47:45 AM PDT by SeekAndFind
The latest jobs report is out, showing the economy added 114,000 jobs, beating estimates of 113,000.
The unemployment rate fell to 7.8%, the Department of Labor reported, due to the addition of 873,000 people who self-identified as employed.
That rate was a sharp drop from the 8.1% a month earlier. Those jobs were mostly part-time in nature. Also, the 7.8% jobless rate understates the problem of the underemployed.
What would the unemployment rate be if all the people who want a job suddenly re-entered the workforce? Answer: 11.63%. For the math, see below.
If the labor force participation rate had remained constant at the 67.5% level at the end of the recession (in June 2009), the unemployment rate would have been reported at around 11%. Count the underemployed, meaning part-timers wanting full time work, and the rate is 14.5%.
The economy must add 13.3 million jobs over the next three years -- 375,000 jobs each month -- to bring the unemployment rate down to 6%, notes economist Peter Morici. That means GDP growth must be running at a 4% to 5% pace, not the 1.3% rate its running at now, a pace that has been trending downhill since last year.
Not good for a recovery that began in June 2009since then, GDP growth has been anemic.
(Excerpt) Read more at foxbusiness.com ...
We need someone to go on TV and use a cartoon like figure as Netanyahu did to the UN to explain to the child minds who vote in this country.
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Just for kicks we should add in all the soldiers serving in places where they shouldn’t be.