Actual U.S. Unemployment: 15.8%

The official unemployment rate released monthly through the Department of Labor is routinely so far off the mark from the real number that it is tantamount to propaganda. The reason: in focusing on our façade of “purchasing power” built on an ever increasing government and consumer debt, and in downplaying the real cost in terms of lost job opportunities and reduced real wages, we continue to support a system of international commerce and labor that sells out our own, national heritage to foreign interests; phony unemployment rates are one way of lulling Americans into seeing this as better than it is in reality.

 

Actual U.S. Unemployment: 15.8% by Frank Ahrens (Washington Post)

 

This morning's news that U.S. unemployment has hit 13.7 million, pushing the rate to 8.9 percent, tells only half the story of this recession.

The total number of Americans who are not working full-time but ought to be is actually about 22 million, or 15.8 percent, according to the Bureau of Labor Statistics.

Who are those other 8.3 million Americans? Call them the unofficially unemployed.

As The Ticker points out each time the Bureau releases the monthly unemployment figure, it does not include many out-of-work Americans.

There are many reasons for this.

The bureau, which is under the Labor Department, cannot use unemployment compensation records to count the out-of-work, because they are not reliable or up-to-date enough. The bureau also cannot count every out-of-work person.

Instead, as the Ticker reported here in December: "In the case of the monthly jobs report, the Labor Department contacts 60,000 households to determine the unemployment picture for the entire workforce, which consists of about 154 million Americans."

The problem with this methodology is that it does not include millions of Americans who are not working full-time who ought to be. Those, in the bureau's words, who are "marginally attached to the labor force."

Those numbered an additional 2.1 million Americans in the first quarter of this year, the bureau said. Alarmingly, that number was up 35 percent from the first quarter of 2008.

Of this number, the bureau categorized 717,000 as "discouraged" workers, or those that have simply given up looking for work for any number of reasons. That number was up 70 percent from the first quarter of 2008.

"Discouraged" workers include a disproportionate number of young people, blacks, Hispanics and men, the bureau said.

On top of all of this, add an additional 3.6 million unemployed Americans who say they want a job but have not looked for work in the past 12 months.

The remaining 2.6 million or so officially unemployed Americans include part-time workers who would prefer to have full-time jobs, those who have not looked for work because of illness or transportation reasons and those who believe they have other impediments.

But even though these workers don't count toward the official monthly unemployment number, they are nevertheless a true weight on the economy.

They don't pay payroll tax, or as much of it as they would; they don't contribute to Social Security or other government entitlement entitlements and they don't spend as much.

The 15.8 percent figure is the highest since the bureau began keeping these figures in 1994. Excluding the current recession, the highest previous rate came in January 1994, when it hit 11.8 percent.

The number was 8.7 percent in December 2007, when the current recession began. That means the number of the unofficially unemployed has shot up 7.1 percentage points since then.

By comparison, the official unemployment rate has risen 3.9 percentage points since December 2007. This suggests that a greater percentage of people are becoming disenfranchised from the workforce than are getting laid off.

By the way, in February, the White House predicted unemployment would top out at 8.1 percent this year, a figure that was blown through the following month.

It has made no call on how high the unofficial unemployment rate will go.

 

 
 
 

 

 

A Letter from a Friend to Michael Erickson

Thanks for posting this. We need more economic nationalism and a lot less "free trade." Unfortunately, the Republican Party is owned by the Wall Street crowd, the globalists, and those who do not give a damn about American workers. If there is any hope for the Republicans, the neocons, globalists, and country club types have to go.

A Response from Michael Erickson

I am in total agreement and want to assure you that, while most of the state and national leadership of the Republican Party sadly is now in the hands of "free traders" and globalist, "New World Order" types, there are still nationalist conservative agitators like myself in the Republican Party, who are working from within the party structure to try to restore the past principles of the Grand Old Party. We were historically the party of the American Union, in the context of opposing secession in the Civil War; in the modern context, that means that we should be the advocates of American Nationalism. We were historically the party of the free laborer, since we opposed slavery not only on moral grounds, but also because of the adverse impact that it had on American workers' wages and working conditions generally; in the modern context, that means that we should be the advocates of keeping jobs here in America for our own workers; restoring our industrial and manufacturing productivity (rather than confusing "prosperity" with government and consumer debt and outsourcing of jobs to the slave labor conditions that prevail elsewhere); working towards energy independence on all levels; and opposing illegal immigration (which is about importing poverty to keep down wages and to provide a permanent underclass that keeps oligarchs in power). Finally, we were historically the party of internal investments and protection from the unfair trade and labor practices of foreign nations, as we recognized once that there cannot be free trade at all without first having fair trade; in the modern context, that means that we should oppose, not sponsor, what people today call "free trade," but what is in fact just the transference of our domestic wealth to international bankers and foreign interests. I am the Chairman of the Sonoma County Republican Party, and I maintain a blog on these matters at the Republicans for the National Interest website. If indeed you have not done so already, then I urge you to check out the blog. More importantly, I am hopeful that you and others with the same commitment to preserving our national heritage - which is a necessary component of Americans being able to live out their lives as free men, as envisioned by the Declaration of Independence - will work within the Republican Party to take it back from the neoconservative, globalist RINOS. It is our party; not theirs. We need only to restore its former principles, because then we shall be in the position once more to elect those who would secure the interests of the American Nation, and her people, rather than sell them out to the lowest common denominators of globalism and "free trade."