Obama’s Economy: Adding “hidden unemployed” makes unemployment rate 10.5 percent

Posted by: ST on September 24, 2012 at 11:00 am

A sobering report via Reuters:

WASHINGTON (Reuters) – When Daniel McCune graduated from college three years ago, he was optimistic his good grades would earn him a job as an intelligence analyst with the government.

With a Bachelor of Science degree from Liberty University in Virginia, majoring in government service and history, McCune applied for jobs at the National Security Agency, the Federal Bureau of Investigation and other agencies.

But after a long hunt that yielded only two interviews, the 26-year-old threw in the towel last fall, joining millions of frustrated Americans who have given up looking for work.

“There’s nothing out there and there probably won’t be anything for a while,” said McCune, from New Concord, Ohio. He has moved back home to live with his parents, who are helping him pay off his college debt of about $20,000.

“I don’t like it, it’s embarrassing. I don’t want to be a burden to my parents,” said McCune, adding that he felt like a high school dropout.

Economists, analyzing government data, estimate about 4 million fewer people are in the labor force than in December 2007, primarily due to a lack of jobs rather than the normal aging of America’s population. The size of the shift underscores the severity of the jobs crisis.

If all those so-called discouraged jobseekers had remained in the labor force, August’s jobless rate of 8.1 percent would have been 10.5 percent.

[…]

The labor force participation rate, or the proportion of working-age Americans who have a job or are looking for one has fallen by an unprecedented 2.5 percentage points since December 2007, slumping to a 31-year low of 63.5 percent.

“We never had a drop like that before in other recessions. The economy is worse off than people realize when people just look at the unemployment rate,” said Keith Hall, senior research fellow at the Mercatus Center at George Mason University in Arlington, Virginia.

Ya think?

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8 Responses to “Obama’s Economy: Adding “hidden unemployed” makes unemployment rate 10.5 percent”

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  1. Phineas says:

    And if you look at the U6 unemployment rate, which includes “marginally attached workers” and those with part-time work who want full-time work, the rate is over 14%.

    That’s Depression-level by any measure.

  2. These figures partly represent who Paul Ryan referred to as twenty-somethings living in their childhood bedrooms with faded Obhammud posters on the wall because they cannot find a job that is not out there. My parents and grandparents lived through the Great Depression; the last one, not this one.

  3. Carlos says:

    As long as there are Democraps and weaselly Republicans (you know – the kind the power structure keeps nominating to run against the jackasses every 4 years), there will be skewed statistics, whether they are about jobs, the economy, murders, how many toilets and televisions and computers are in each household. It doesn’t matter. The government drones will cook up whatever numbers they want to show how any particular administration is doing at any given time, and they are the worst of lies and liars.

    A slight change in Truman’s quote: Lies, damned lies, and politicians.

  4. Lee says:

    Both my ex-husband and my best friend are unemployed. They both regularly get jobs through a temp agency and work at FEMA projects in Northern VA, Maryland & Pennsylvania. Before each job they are forced to sit through an orientaion where they are told that “your job was made possible thanks to our President”. Then 4- 6 weeks later, the job is finished and they are once again unemployed.I guess that makes up quite a lot of those “newly created jobs” he touts to the press, never hinting that they are the same people hired over and over, then laid off.

  5. Carlos says:

    I wonder: Does the Labor Department include3 dead Democrat voters in its count of the employed, since they only work one day every two or four years?

  6. Carlos says:

    “I wonder: Does the Labor Department include3 dead Democrat voters in its count of the employed, since they only work one day every two or four years?”

    Sorry about not proofing that first. Now it makes more sense, since it’s not limited to “3 dead Democrat voters.”