I have tried to explain “unemployment” in the past … But this beats my explanation hands down and you can thank Mint.com for this….
A little bit of an explanation of Unemployment. Click the picture for a larger image.
(source: Mint.com)
Well the jobs report came out today… Welcome to 10.2% unemployment, that is the "official” unemployment rate or U-3 rate. The U-4 (Total unemployed plus discouraged workers) rate is 10.7%, the U-5 (Total unemployed, plus discouraged workers, plus all other marginally attached workers) is 11.6% and the U-6 (Total unemployed, plus all marginally attached workers, plus total employed part time for economic reasons) is 17.5%. The U-3 rate is the highest since April 1983. I still see the real unemployment rate as U-4 or U-5 and it is more reflective of reality. Some one who wants a job, but can’t find one and has stopped looking because there is no use to search, is still unemployed.
In a recent email with my in-laws I wrote a little about the unemployment rate and what is going in the economy. I thought I would share some of the information here.
First, I think it goes without saying that the economy just plainly sucks. Second, this is not an indictment of the Obama or Bush administration. Third, the outlook is bleak for the next few years and I think we can all agree that it feels like it is worse than a 9.8% unemployment rate.