RE: The “real” unemployment number u6 is what should be the “official” number, and it was flat - more than 14%.
Here’s the question — when they reported unemployment numbers in the past (since the figures were first reported), on which figure were they mostly emphasizing?
For instance, under FDR, the unemployment rate reached over 20%. Was this U3 or U6?
RE: The “real” unemployment number u6 is what should be the “official” number, and it was flat - more than 14%.
Here’s the question — when they reported unemployment numbers in the past (since the figures were first reported), on which figure were they mostly emphasizing?
For instance, under FDR, the unemployment rate reached over 20%. Was this U3 or U6?
There is no way to directly compare the U's of the past with the U's of today.
The concept of discouraged workers was developed under JFK. There was a major rewrite of the way the U's are calculated; it was released under Clinton in the early 1990s. Part of the rewrite was removing long term discouraged workers from the civilian labor force.
OLD U-1 - U-7
U-1 Persons unemployed 15 weeks or longer as a percent of the civilian labor force
U-2 Job losers as a percent of the civilian labor force U-3 Unemployed persons 25 years and over as a percent of the civilian labor force for persons 25 years and over
U-4 Unemployed full-time jobseekers as a percent of the full-time civilian labor force
U-5 Total unemployed as a percent of the civilian labor force (official unemployment rate) [includes part time]
U-6 Total full-time jobseekers plus 1/2 part-time
jobseekers plus 1/2 total on part-time for economic reasons as a percent of the civilian labor force less 1/2 of the part-time labor force
U-7 Total full-time jobseekers plus 1/2 part-time jobseekers plus 1/2 total on part-time for economic reasons plus discouraged workers as a percent of the civilian labor force plus discouraged workers less of the part-time labor force
NEW U-1 - U-6
U-1 Persons unemployed 15 weeks or longer, as a percent of the civilian labor force
U-2 Job losers and persons who completed temporary jobs, as a percent of the civilian labor force
U-3 Total unemployed, as a percent of the civilian labor force (official unemployment rate)
U-4 Total unemployed plus discouraged workers, as a percent of the civilian labor force plus discouraged workers U-5 Total unemployed, plus discouraged workers, plus all other marginally attached
workers, as a percent of the civilian labor force plus all marginally attached workers
U-6 Total unemployed, plus discouraged workers, plus all marginally attached workers, plus total employed part time for economic reasons, as a percent of the civilian labor force plus all marginally attached workers
Here is an
interesting article comparing unemployment in 2011 with the Great Depression
Here is a good approximation of unemployment counting all in the civilian labor force who are unemployed and employed part time but need full time plus those moved out of the civilian labor force who need jobs. The contention is that U-6 is the closest measure available today to compare to the Great Depression.