He brings up an interesting point. The official way to calculate unemployment (U3) has been so messed with that nobody wants to hear it anymore because everyone knows it is a bogus figure. Enter U6, a more old-fashioned calculation which determines true unemployment. Apparently at least one pundit is pegging it at over 30-percent soon!

Found by John Ligums.




  1. Jim says:

    It’s interesting if you look at the gender breakdown — men are at 10.6% (8.7M), women at 8.3% (6M) which would indicate to me that it’s hitting manufacturing heavily but not the white-collar side as much for the moment.

    Since they don’t do an actual census for the actual numbers, it’s fully an estimate anyway.

    Something you might want to think about too — how many announcements of layoffs have there been in the past 2-3 months? Not many. Now, why is that? Companies hiding their firing? Or the news organizations not picking up on them?

  2. nolimit662 says:

    And how about the underemployed? Take for example, where I work they now want our union to take a 15% pay cut as well as a reduction in hours. I’m already broke every week. They may as well shut down the place and get it over with. I have no idea how I’ll make it with 15% less pay. At this rate I may as well work at McDonalds.

  3. ECA says:

    oK,
    I find the numbers funny and stupid anyway.
    2 points to ponder.
    1. the money that was being used by the MAJOR players was VIRTUAL. there was no money that traded hands. The amount of money they were talking about, hasnt even been printed yet.
    2. Numbers in an economy are STUPID. most of the time if you double them you are closer to the total amount NOT working. But those are based on HOUSEHOLDS, and 1 person working. I would look at a 50% not working to mean that 1 person is AT HOME WATCHING THE KIDS. If we actually COUNT working people to those NOT working the numbers are VERY VERY HIGH. At this time with the HOUSE HOLD numbers(considered not working) about >70% are not working.

    IF this country isnt going to be into MANUFACTURING any more we have to find something else to do.
    Information, innovation, concepts, IDEAS, ART, Farming and feed the world, Buying up ALL the goods and becoming the WORLD reseller..SOMETHING.

  4. Cursor_ says:

    First of all why should we believe ANY of these economic experts when they clearly fumbled the ball on the bubble and the burst?

    Second, have you been in a soup line yet? Has anyone? I have yet to see the footage of a large scale soup kitchen like from the 30’s. I will admit the amount of homeless coming to normal charities are up; but nothing remotely close to the 30’s. What did the Obama admin turn them all into Soylent Green?

    Third, if you REALLY want some better numbers, then start with those signing up for COBRA to keep their insurance. Remember the new admin is partially funding that insurance and more will be taking him up on it. At our own expense mind you.

    Cursor_

  5. Cephus says:

    COBRA really isn’t a good measure, there are plenty of people who cannot afford COBRA coverage once they lose their jobs and simply go without any insurance at all. It just means that if anything happens, they show up at the emergency room and get free care that the state never compensates the hospitals for.

  6. atmusky says:

    #4 – You will not see soup lines like the 30s unless there is a full blown government shut down. We have social safety net programs that they did not have in the 30s like unemployment, welfare, rental assistance programs, and food stamps. All the social safety net programs are being stressed and most received extra money in the stimulus package.

  7. Zybch says:

    #4 Mmmmm, soylent green…

  8. Mr Diesel says:

    For the first time that anyone can remember (over 30 years) we had layoffs where I work. We were virtually recession proof. Those days are gone and we are getting ready to go through another round of layoffs. I talked to people at other places doing the same thing we do and they said that if we catch a cold they get pneumonia or die.

    Bad times for sure but don’t worry, Obomba will just print some more money and drive us even further into debt with his idiotic economic policies. I heard the anointed one say that the way to bring down the deficit was to get medical spending under control. WTF!! He does not give two shits about ruining this country so long as he gets everything he wants.

    I can only hope I live long enough to see him out of office and someone in there to bring us out of this cesspool he is putting us into.

  9. Bastian says:

    Recession Proof = Elderly Health Care

  10. FRAGaLOT says:

    What is considered “unemployment?” It’s always seems to be people who have had jobs, and then FILED for unemployment. Not just people who aren’t working, or have never worked.

    I know some 18 yearolds who never had jobs yet, are they considered unemployed? Then there are some people who never worked a day in their life since they come from rich families, are they unemployed?

    “Unemployed” needs to be defined since I could also say my pets are unemployed (some animals have jobs) and really skew the unemployment numbers. Unemployment numbers can be spun in so many different ways.. how can U3 or U6 numbers be accurate at ALL!?

  11. Dallas says:

    The important thing is to skew and amplify the unemployment numbers to attract readers.

  12. SparkyOne says:

    # 9 Bastian
    or soylent green sales

  13. Bastian says:

    Exactly!

  14. Mr. Fusion says:

    The rate might be high now, but it will decrease. Every Democrat President since 1950, and I’m quite sure before that, has seen a general decline in unemployment rates while every Republican President has seen an increase.

    Coincidence? I think not.

  15. Winston says:

    “Enter U6, a more old-fashioned calculation which determines true unemployment.”

    No, even the BLS’s U6 isn’t accurate, isn’t high enough due to the “discouraged workers” exemption fudged out of the figures during the Clinton administration. By the “logic” of the “discouraged workers” exemption taken to its extreme, if 100% of the workforce in the US was unemployed _but no longer actively looking for employment_, unemployment would be ZERO.

  16. AC_in_Mich says:

    And how many of these figures look at the underemployed self employed? The painter getting one job every two weeks – the builder having to do roofing jobs, the barbershop watching people cut their own hair – the computer repair shops not getting anyone walking in the door? They are usually “lost” in the figures

  17. deowll says:

    Not everyone posting is even from the same country.

    I seem to recall 14% inflation which amounts to another form of taxation that pretty much takes your savings away and that’s definitely an option with the way Congress is burning money.

    Crap and trade is worth a few point and so is the health care bill though God knows the bloat needs to be taken out of current health care system.

    China and India are going to get tired of buying our bad loans though if it looks like we can’t pay off on them.

    What I do know is that work is going to have to pick up a heck of a lot before the people that are counted as having work are going to be working full time and people need to start hiring.

    Yes, Mr. Fusion the Vietnam war and run away spending did increase jobs. The problem is most people don’t like wars and what do you do when the money runs out?

  18. Mr. Fusion says:

    #17, deowll

    The problem is most people don’t like wars and what do you do when the money runs out?

    Well, judging from the last 80 years, we know that electing a Republican President will result in higher unemployment and greater debt.

  19. Mr. Fusion says:

    #15, Winston,

    No, even the BLS’s U6 isn’t accurate, isn’t high enough due to the “discouraged workers” exemption fudged out of the figures during the Clinton administration.

    Not true.

    * U1: Percentage of labor force unemployed 15 weeks or longer.
    * U2: Percentage of labor force who lost jobs or completed temporary work.
    * U3: Official unemployment rate per ILO definition.
    * U4: U3 + “discouraged workers”, or those who have stopped looking for work because current economic conditions make them believe that no work is available for them.
    * U5: U4 + other “marginally attached workers”, or “loosely attached workers”, or those who “would like” and are able to work, but have not looked for work recently.
    * U6: U5 + Part time workers who want to work full time, but cannot due to economic reasons.

    Note that U4 is U3 + all discouraged workers. U5 and U6 also include U4 numbers.

  20. ECA says:

    HOW long ago was it possible to have a Single income family.
    Leaving 1 person at home to deal with the house, kids, bills, buying the cheapest foods, coupons, laundry, meals, …, at least a person who knew how.
    We have gotten away from this, and its NOT HELPING.
    And If a person had to do it, the person making the money would need to be making $15-20 per hour to make ends meet.

  21. brendal says:

    Guns or butter – it’s beginning to look a lot like guns.

  22. Troublemaker says:

    Mr Complete and Utter Steaming Pile of Shit said:

    Bad times for sure but don’t worry, Obomba will just print some more money and drive us even further into debt with his idiotic economic policies. I heard the anointed one say that the way to bring down the deficit was to get medical spending under control. WTF!! He does not give two shits about ruining this country so long as he gets everything he wants.

    I can only hope I live long enough to see him out of office and someone in there to bring us out of this cesspool he is putting us into.

    Yeah, this economic disaster just appeared out of nowhere, January of this year.

    It’s not like you’re looking at the effects of 30 years of Reaganomics in action.

    Asswipe…

  23. ECA says:

    21,
    very true and with a gun I can get meat..and a few other things.

    Have you noticed that there is a DROP in the most popular ammo types/sizes?? for the last 6+ months??


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