Wednesday, August 26, 2009

"Real" Unemployment at 16%


An interesting (and I think valid) distinction highlighted by certain economists, that of unemployment and "real" unemployment rates, is discussed here. Basically, if I lose my job and finally, after months of looking for a full-time replacement, have to settle for a part-time gig flipping burgers and filling Happy Meals at McDonald's, while I would technically be "employed," I'd be described as a "discouraged worker." This kind of work, while great for some, would hardly be the kind of work I'd be looking for in a more virile market economy, both in terms of the hours I'm looking to fill and what type of job best jibes with my qualifications, interests, education and background. Many people today, unfortunately, find themselves in exactly this kind of situation. Don't look for this on MSNBC:
The real US unemployment rate is 16 percent if persons who have dropped out of the labor pool and those working less than they would like are counted, a Federal Reserve official said Wednesday.

"If one considers the people who would like a job but have stopped looking -- so-called discouraged workers -- and those who are working fewer hours than they want, the unemployment rate would move from the official 9.4 percent to 16 percent, said Atlanta Fed chief Dennis Lockhart.

Read the rest here.

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