Friday, February 3, 2012

The Real Unemployment Rate

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%).  While certain politicians and media (including Fox News) would like you to believe that the economy has gotten better, the facts prove that it is actually getting worse
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