Since the we get payroll numbers tomorrow at 08:30, let's talk about two things.
First the unemployment rate that you hear on TV an in the paper and in most places on the internet is called the U-3 Unemployment rate. Which covers Total people unemployed, as a percent of the civilian labor force (official unemployment rate), as defined by when people are without jobs and they have actively looked for work within the past four weeks. So the U-3 is people out of work who are looking for work.
Ok, not bad but have you ever heard of U-4, U-5 or U-6? let's take a look at those...........
U-4 Total unemployed (U-3 Number) + plus discouraged workers,or those who have stopped looking for work because current economic conditions make them believe that no work is available for them, as a percent of the civilian labor force plus discouraged workers.
Hmmmmmm..... that sounds like a lot of people.
U-5 Total unemployed, plus discouraged workers(U-4), plus all other persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force, Or U-4 number +"marginally attached workers", or "loosely attached workers", or those who "would like" and are able to work, but have not looked for work recently.
Wow..... Ok that sounds like more people.......
And the number that we look at instead of the Headline (U-3) number....
U-6 Total unemployed, plus all persons marginally attached to the labor force, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all persons marginally attached to the labor force, or U-5 + Part time workers who want to work full time, but cannot due to economic reasons (those underemployed).
Uhhhh....... we all know tuns of people who are underemployed. this to us is the real number of the work force.
Take a look at the chart above and look at the difference and you will realize why no one talks about the U-6 or the "Real Unemployment" number.
Want to see the real time U-3, U-4, U-5, or U-6, try these links
www.portalseven.com
www.shadowstats.com
http://www.bls.gov/news.release/empsit.t15.htm - The US Department of Labor - Bureau of Labor Statistics.
Enjoy
