Friday, June 7, 2019

Do You Know Someone Who Is Underemployed? Real Unemployment is 7.1%


Our news media give us only one measure of unemployment. Officially, the Department of Labor calls this U3— their third way of measuring unemployment. It is the total number of people (A) working, or (B) seeking work— called the labor force— and measuring the percentage of job seekers relative to this overall labor force.
There are other measures of unemployment. One is U6. It includes “marginally attached” workers, plus part-time workers. 
In U3, they count the same as someone working their dream full-time job. 
U6 counts someone is working a short gig more like a job seeker than a fully attached worker.
The May 2019 figure for U6 was 7.1%, while U3 was 3.6%. See this: https://www.bls.gov/news.release/empsit.t15.htm.
Want a concrete example of a U6 worker? The New York Times reports on older workers today, noting:
More than half of workers over 50 lose longtime jobs before they are ready to retire, according to a recent analysis by the Urban Institute and ProPublica. Of those, nine out of 10 never recover their previous earning power. Some are able to find only piecemeal or gig work.
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