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The Real Unemployment Rate (What would the rate be if people who want a job entered the workforce?)
Fox Business News ^ | 10/08/2012 | Elizabeth MacDonald

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 it’s running at now, a pace that has been trending downhill since last year.

Not good for a recovery that began in June 2009—since then, GDP growth has been anemic.

(Excerpt) Read more at foxbusiness.com ...


TOPICS: News/Current Events
KEYWORDS: 2012; bhoeconomy; economy; elections; job; jobs; unemployment

1 posted on 10/08/2012 6:47:54 AM PDT by SeekAndFind
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To: SeekAndFind
This should be simple for most. If 114,000 represent .3% of the unemployed then that would mean there are only 3,800,000 unemployed. We all know that is a lie.

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.

2 posted on 10/08/2012 6:59:01 AM PDT by raybbr (People who still support Obama are either a Marxist or a moron.)
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To: All


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3 posted on 10/08/2012 7:04:14 AM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: raybbr
OBAMA PROMISES JOBS FOR ALL...


4 posted on 10/08/2012 7:05:40 AM PDT by SeekAndFind (bOTRT)
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To: SeekAndFind

Just for kicks we should add in all the soldiers serving in places where they shouldn’t be.


5 posted on 10/08/2012 7:16:22 AM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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