The real unemployment rate

2 Responses to The real unemployment rate

1. Glenn B says:

   February 6, 2009 at 9:46 pm

   I took a quick look at the article and it mentioned people who cannot find work. That is absolute balderdash and I would call it something stronger except that I will remain respectful. There are plenty of jobs out there, as proven by the unending flood of illegal immigrunts who crioss our borders daily looking for work and find it too. The news papers, the online services, and other sources have plenty of jobs listed. It is about time we as American realize that when we lose our cushy jobs there are plenty of shitty ones to hold us over until things get better. I say it is time to start demanding that out of work citizens take those jobs, and that we demand employers to cut the illegal workers out of what we still do have available.

   Mind you, I speak from experience too. I had about 8 totally crappy jobs before I got through college, and then through a year or two more, before I got my job that turned into my career. Even my first job in my career was considered crap by many because of how hard and dangerous it was (I considered it one heck of a job at that but at shitty wages for what I went through) and in what I believe was a hell hole called Calexico, CA. So I know, if I lost my job tomorrow, I could find work. Not great work, not even well paying work, but work that certainly would put food on the table. As for all these whiners, who want good times forever, and want the quick fix now, I am sick of them all wanting something for virtually nothing.

   All the best,
   GB
2. Tom says:

   February 7, 2009 at 10:12 am

   A better way of looking at “employment health” is to watch the payroll reports. There are numerous problems with the published unemployment rates — consider this simple example:

   100 million people in the Labor Force, 10 million unemployed. Unemployment is thus 10/10+90 = 10%.

   In the next month, 1 million of the unemployed give up and become “discouraged workers”. What happens to the unemployment rate? It decreases! to about 9%: 9/9+90 =~ 9%.

   If we looked at payroll for the same periods we would see 90 million employed.

   Expanding the second month: what if 1 million become discouraged and 1 million lose their jobs? Unemployment still stands at ~9% (9/9+89 =~ 9%), but the economy has lost 1 million jobs! Payrolls reports would in this example would show this decline (90m -> 89m).

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