Those who don't want a job and therefore aren't looking if they are polled by the Department of Labor trying to calculate employment stats don't count among the unemployed. You are only part of the labor pool if you have a job or are actively looking for a job.
3. The doom and gloom is causing much of the lack of confidence. People with steady jobs are not buying because of fear. This will need to change before we can recover.
Either fear or sudden sobriety at how the country has been living. Is it fear or rational thought that makes you realize that you really do need a few months of pay in the bank? It is a problem for the economy when everyone comes to that realization at once, but that can be overcome when banks start lending to business which are focused on longer term projects than just blind consumption.
1. When UE hits 4% in Georgia, you can’t find anyone who wants to show up for work three days in a row sober to work...
2. People should not spend more than they make, and of course they should have emergency funds. I was just making the point that before the economy can start growing again, confidence is going to have to increase. It is an obvious point and it might take a while. For many people it should take a while.