The official figures are kept artificially low because of the “birth-death model” and other artifices. The actual unemployment rate on the ground is close to 10%. Mish Shedlock has an absolutely excellent article explaining the numbers, both real and imagined; it makes the situation quite clear. If you’re interested in crunching the numbers, read it by clicking on the link later in this post. Otherwise, here’s the money quote:
“If you start counting all the people that want a job but gave up, all the people with part-time jobs that want a full-time job, etc., you get a closer picture of what the unemployment rate is. The official government number remained 5.5% after May’s huge jump, but U-6 (the most inclusive number) rose .2 to 9.9%. To the average Joe on the street unemployment feels more like 10% than 5.5. Both numbers are poised to rise.”
Full article: http://globaleconomicanalysis.blogspot.com/2008/07/jobs-decline-6th-consecutive-months.html
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