Despite Latest Jobs Data, Unemployment Remains Unchanged193 views 2012-10-20 04:15
With the unemployment rate for the latest jobs data now coming under eight percent, it looks like the unemployment rate has improved; but Michael Lombardi, lead contributor to Profit Confidential, notes that the job numbers don’t include the people who have given up looking for work. Lombardi reports that the real unemployment rate in the overall U.S. economy has not changed, except that it is more vulnerable now.
“The unemployment rate in the U.S. economy was above eight percent for 43 straight months and now, all of a sudden, it decreased to 7.8% in September,” recalls Lombardi. “Here’s the real story: 12.1 million Americans who are ready, willing, and able to work do not have jobs in the U.S. economy.”
In the article “The Truth Behind Today’s U.S. Job Numbers Report,” Lombardi states that the unemployment rate for the people who are considered long-time unemployed did not change. Lombardi points out that this group makes up more than 40% of the unemployed, and they have been out of the workforce for 27 weeks or more.
Looking at the new unemployment rate, Lombardi also notes that the number of part-time employed people in the U.S. economy increased in September to 8.6 million, compared to 8.0 million in August.
“They are not working part-time by choice; they simply can’t find full-time jobs. In addition, there are another 1.7 million people who have not looked for jobs for the last four weeks,” reports Lombardi.
Lombardi is also worried about the underemployment rate, which includes people who have given up looking for work and people who have part-time jobs but want full-time jobs, which remains unchanged from August: “It currently stands at 14.7%, which is slightly higher than it was in May of this year,” says Lombardi.
The Profit Confidential lead contributor states that the real unemployment rate in the overall U.S. economy has not changed, and he argues that the underemployment rate needs to go down in order to improve the jobs market.
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