Point to ponder: Is unemployment 6.7 or 12.2%? Depends on which of the 6 official Labor Department figures the White House, the Department, and press chose to use. The Labor Department actually releases six different numbers every month. These are called U-1 through U-6 and range from a narrow definition of the unemployed population and to a much broader one. The departments monthly report always uses the U-3 figure as the official number though. Virtually all media outlets take their cue from the department on this. Thats why this months U-3 result – 6.3 percent – dominated the news reports. Why that figure and not one of the other five? Good question – labor economists have said the designation is basically arbitrary. U-3 is officially defined as total unemployed, as a percent of the civilian labor force. A more precise definition would people who are out of work but still actively looking for a job. U-4, on the other hand, includes those who are out of work but have given up looking. U-5 is a slightly broader definition of the same. Those numbers this month are 6.7 and 7.6 percent, respectively. U-6 expands the figure even further to include the under-employed, such as people who are only able to find part-time work. The Labor Department put that figure at 12.2 percent this month. Those would all seem to be a much more accurate reflection of the workforce and the economy since they include people who would be employed if they could only find full-time work. Ask yourself: Does this feel like an economy at 6.3 percent?
Posted on: Sun, 08 Jun 2014 10:43:22 +0000
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