Maybe if the good news about the U.S. economy gets repeated often enough, appearance will become reality.
We’re not there yet.
The official word from the U.S. Bureau of Labor Statistics is that the unemployment rate has been cut nearly in half, from a double-digit 10% in October 2009 to just 5.5% today. As the chart shows, unemployment has been steadily falling and, given today’s improving economy it should continue to fall. So all is good, right?
Not really. Even CNBC, which is not exactly an anti-government media outlet, has caught on that the U-3 rate is bogus.
CNBC wrote that, “A number of economists look past the ‘main’ unemployment rate to a different figure the Bureau of Labor Statistics calls ‘U-6,’ which it defines as ‘total unemployed, plus all marginally attached workers plus total employed part time for economic reasons, as a percent of all civilian labor force plus all marginally attached workers.’ ”
In other words, the U-6 rate is what any sane individual would consider to be the real unemployment rate.
The U-6 rate peaked at 17.1% in April 2010 and by March had fallen to 10.9%, the first time it has been below 11% since Aug. 2008. So while unemployment has been falling, the U.S. still has double-digit unemployment. How European!
Another Record Smashed