Friday, June 3, 2016

U2 - U3 - U6 ... What are U looking for?

U2 sings: I still haven't found what I'm looking for...


U3 says: Official Unemployment Rate is 4.7%


U6 says: Real Unemployment Rate is 9.7%   How can this be?  Why is the Real Number more than twice as much as the Official Number?


From the Wall Street Journal Online:


The standard measure [U3] of unemployment only includes people who are actively looking for work. Broader measures of unemployment and underemployment have also declined in recent years.


These measures include discouraged and marginally attached workers who would like to work but have given up searching for employment.


The broadest measure [U6] of underemployment was unchanged at 9.7% this month. This measure includes workers who have given up searching and also part-time workers who would prefer to work full time.
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Link: http://blogs.wsj.com/economics/2016/06/03/the-may-jobs-report-in-12-charts-2/
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See the numbers yourself: http://www.bls.gov/news.release/empsit.t15.htm

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