Saturday, June 25, 2011

US unemployement rate is more than the disclosed

According to US department of labor the unemployment is 9.1% as on May 2011. That is 13.7 M. The dropped out and under employed people are not considered in the above list. In May, the number of long-term unemployed (those jobless for 27 weeks and over) increased by 361,000 to 6.2 million. This number will continue to increase as the unemployed move through the duration categories. But this number is not the actual number.


In the above image, the unemployment was in peak in early 1980s. That time that is
before Clinton administration, the unemployment percentage was calculated inclusive of "discouraged workers". Discouraged workers are those who tried for job and gave up as they didn't get job. Many of them are more than 50 years. The above doesn't include the "Marginally attached" workers. They are people who are available for jobs but not joining any job due to child care or transportation cost.

US must address this problem as this is growing seriously. Otherwise a great depression is unavoidable.

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