The Real Unemployment Rate

Today, the US government announced that the unemployment rate has dropped to 8.3%, signalling that the US economy has turned a corner and is getting better. Of course, there is less to this number than meets the eye. As Warrior Woman explains:

So for those of you that don’t do research, the unemployment rate that the news gives us is called U3, which includes those people who are on unemployment.  This does not include those who have run out of unemployment or those who are working part time due to economic reasons.  The U6 version of the unemployment does cover this demographic.  Back when the U3 unemployment was at 9.0, U6 was at 16.2 When U3 was at 8.6, U6 was at 15.6  Now that the media is telling us that the U3 unemployment rate is 8.3 (conveniently during election time) we can assume that the real unemployment rate is in fact U6 15.3.
While the media will tell you that the drop in unemployment is due to an increase in jobs, this is only a half truth.  Many of the jobs that were once a part of the United States have now been outsourced to other countries (meaning they’re not here anymore).  This decreases the size of the United States’ economy and makes available jobs more scarce
Finally, let us not forget that the U3 unemployment rate was 7.8% when Obama took office (that’s U6 14.1%).

Indeed, if Newt Romney or Ron Santorum would simply keep asking the question, “Are you better off now than you were four years ago?” The election would be a landslide. While government employees, politicians, and political appointees are certainly better off, everyone else is sucking eggs.

As John Hinderaker explains,

Here is another very basic fact: notwithstanding the employment gains in January, there are fewer Americans working today than there were when George W. Bush took office in January 2001, and more than one million fewer Americans are working than when Barack Obama was inaugurated! What an appalling record! If Obama had campaigned in 2008 on the promise that, if he were elected, a million more Americans would be unable to find work, would you have voted for him? Would anyone have voted for him?

Of course, as we will be reminded over and over again even throughout Obama’s fourth term as president when America is facing unemployment numbers above 10%–it is all Bush’s fault. Perish the thought that Obama’s own policies may have made matters worse and kept the economy from recovering.

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5 Responses to The Real Unemployment Rate

  1. wdednh says:

    Reblogged this on YOU DECIDE.

  2. Brilliant reblogged on News on the Right
    John Wilder

  3. Pingback: Here is The Actual Unemployment Rate | News On The Right

  4. Pingback: Happy With 8.3% Unemployement? « The American Tea Man

  5. Pingback: Unemployment, the Web Politicians Weave, and How It Affects Us | Bankruptcy Blog

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