Real jobless rate not cast in percentage figure
Saturday's Bradenton Herald's page one article "Manatee joblessness drops in November" is another headline meant to make us feel good about the area and U.S. unemployment situation while the disturbing truth is not discussed. In short, don't believe it.
The Department of Labor's Bureau of Labor Statistics (BLS) publishes an unemployment number that does not reflect reality. In the last quarter, for instance, across the U.S., 501,000 people found jobs, but 984,000 quit looking for jobs, and they are not included in the "unemployment rate."
The numbers since 2009 are even more disturbing and are not reflected in the BLS unemployment rate: Since 2009 7,598,000 jobs have been added, yet 14,230,000 people that can work have left the work force and have quit looking. They are not counted in the BLS numbers.
Net jobs since 2009 have dropped by over 6.6 million, according to BLS. According to the BLS formula, if every American intentionally quit work, our unemployment rate would be 0 percent.
Three statistics released by Federal Reserve Chairwoman Janet Yellen on Dec. 8 demonstrate fundamental issues: The long-term unemployed, those looking for work for over 27 weeks, stands at 25.7 percent compared to 19.1 percent in 2008; the U6 "underemployment rate" of those who are looking for full-time work or a better job stands at 9.9 percent of workers vs. 8.8 percent in 2008; and, the workforce participation rate, of all those eligible to work, stands at 62.5 percent vs. 68.1 percent in 2008, meaning our economy now after eight years is supported by nearly 5.5 percent less people in the work force of those who could work. This decline is not sustainable and clearly reflected in the 14 plus million people leaving work mentioned previously.
America is headed in the wrong direction on job creation and our BLS should publish the truth in a "employment rate" vs. the dishonest "unemployment rate."
Rob Hartwell
Palmetto
This story was originally published December 22, 2015 at 12:00 AM with the headline "Real jobless rate not cast in percentage figure ."