Real US Unemployment Rates Reveal True State of Economy

Daniel G. J.
by
September 21st, 2013
Updated 09/21/2013 at 2:16 pm

The ‘official’ US unemployment rates pushed by number cookers may seem grim, but the real unemployment rates within the US tell a much more realistic and concerning tale.  

unemloyment-numbers-realEven recent drops in the numbers of unemployed people reported by the U.S. Labor Department were apparently too good to be true. The U.S. Bureau of Labor Statistics has admitted that the improved employment figures it recently reported were the result of a computer error, and that’s just the beginning. We’re looking at the ‘final breath’ of the economy before either collapse or reform that Anthony Gucciardi has detailed.

The Labor Department reported that the number of those applying for unemployment benefits fell by 31,000 during the first week of September. Yet just a week later a Labor Department spokesman admitted the real cause of the drop was that two states he wouldn’t identity changed their computer systems. This delayed the reporting of some claims and produced the “drop.”

The Department has finally admitted what a lot of Americans, including many economists, have long suspected: that unemployment rates are calculated in such a way as to make the economy look better than it actually is.

Why Unemployment Statistics Are Inaccurate and Unrealistic

This incident shows how inaccurate, unreliable, and unrealistic unemployment statistics really are. The statistics are unreliable because of the methodology used by the bureau. Instead of counting the number of people without jobs or those looking for work, the agency simply counts the number of applications for unemployment insurance.

That methodology is flawed because not every unemployed person applies for unemployment insurance; some people don’t qualify for it while others may have other sources of income. There are also those whose benefits have expired and persons that refuse to participate in the system.

Another big problem is that not everybody who applies for unemployment insurance is unemployed. Some people apply for it while they are still working. Others might be working off the books, say for cash tips.

The Real Unemployment Rate

Others criticize the system because it doesn’t count the underemployed. The underemployed are persons who have settled for lower paying or part-time work because that’s all they can find. An example of this might be a computer programmer that is now driving a truck.

The real unemployment rate is 14.3%, according to Forbes columnist Dan Diamond not the 7.6% touted by politicians. What these numbers mean is that claims of an economic recovery are greatly exaggerated. Perhaps the Labor Department is telling us and Wall Street what we want to hear rather than the truth.

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Category: Money

Daniel G. J.

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Comments (8)

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  1. felli says:

    Economy is gone

  2. cee jay says:

    When are the sheeple going to wke up and take their country back? Or, if not, do they deserve to let a bunch of crooks run their country and thus a great part of their lives. If each able bodied American citizen would take it upon themselves to dispose of one crook, this totalitarisn oligarchy would vanish quickly.

  3. Mr.Lincoln says:

    September 23, 2013 Americans' Belief That Gov't Is Too Powerful at Record Level Record number of Republicans say the federal government has too much power by Joy Wilke
    http://www.gallup.com/poll/164591/americans-belie

  4. nubwaxer says:

    i see i've landed in the middle of a right wing extremist circle jerk. to quote that great leader of texas "oops".

  5. Kneel says:

    I agree that the situation is grim, but the middle section of your article is plain wrong. It is a common misconception that BLS calculates unemployment rates by counting unemployment benefit applications. The methodology is given right here – http://www.bls.gov/cps/cps_htgm.htm. I hope you will correct your article in good faith.

  6. Bertie says:

    The way unemployment increasing around the US is concerning. Though online or outsourcing works pretty much recovered such unemployment rate, but I think considering the household of per American's a good employment is definitely needed in the future. Thanks.
    unemployed

  7. Bassface says:

    Kneel, thank you for the link I found it very informative. I have to wonder, if the true economic trend based on these numbers is showing valid improvement, why do I look around and notice my friends and the small businesses in my community suffering, and see so many other signs of constriction and financial stress keep passing my eyes? Maybe I am looking the wrong way and not seeing how many are making fortunes or I'm in a local pocket. No sarcasm intended. I think there are some bigger fundamental issues that need to, and will be, addressed as we continue to evolve but until then, hang on! It's going to be some ride!

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