The U.S. Bureau of Labor Statistics (BLS) November 2008 jobs report released yesterday (Friday) indicated over 533,000 jobs were lost last month. This raises the U.S. unemployment rate from 6.1% in October to 6.7% in November. However, once again the people who have left the work force are not counted; they are the "forgotten" ones. BLS defines these individuals with an oblique term: The Underutilization Rate.
BLS refers to the discouraged and underemployed (those working fewer hours than they would like) as the "underutilization" rate which is now up to 12.5% in November an increase of 1.5% from the 11% reported in September 2008.
So let's do some real simple math here: 6.7% reported U.S. unemployment rate for November plus 12.5% underutilization rate means 19.2% "real unemployment" rate. Only 5.8% to go to hit the magic 25% unemployment of the Great Depression. Maybe it will happen. Only time can tell.
This factor is hard to determine since accurate methodologies for determining who has given up looking for work or may hardly work at all (underemployment) does not have the same high degree of statistical analysis.
Original Sources: U.S. Bureau of Labor Statistics Unemployment Report - 12/5/08
"Lost Jobs Add to the Economic Free Fall" - StarTribune - 12/6/08 - Page 1
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