Posted on 02/24/2015 5:36:17 PM PST by Son House
Federal Reserve Chair Janet Yellen said Tuesday at a Senate Banking Committee hearing that the U-6 unemployment rate--which includes people who are working part-time for economic reasons and those who are marginally attached to the labor force--“definitely shows a less rosy picture” of employment in the country.
People "marginally attached" to the labor force "are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for one work sometime in the past 12 months."
In January, according to the Bureau of Labor Statistics, the "U-3" unemployment rate, which is the one generally reported, was 5.7 percent. U-6 was 11.3 percent.
The "U-3" rate counts as "unemployed" only people who actively sought a job in the past four weeks but did not find one.
Chairman Richard Shelby (R-Ala.) asked Yellen, “Do you agree that the unemployment number that you cited, 5.7 percent, in your opening statement paints a rosy or better picture of the true unemployment rate?”
“The U-6 is a broader measure of unemployment, and it includes marginally attached and discouraged workers and also an unusually large number of individuals who are working part-time who would like full-time jobs, so it is a much broader indicator of underemployment or unemployment in the U.S. economy,” Yellen said. “And a lot of it’s come down. It was 12.1 percent a year ago. It’s come down from there to 11.3. It definitely shows a less rosy picture than U-3 or the 5.7 percent number.”
“And I did mention that we don’t at this point, in spite of the fact the unemployment rate has come down, don’t feel that we have achieved so-called maximum employment in part for these very reasons,” Yellen said.
“Labor force participation has come down, has been trending down. That is something that will continue for demographic reasons. I don’t expect it to move up over time, but I do think a portion of the depressed labor force participation does reflect cyclical weakness in the stronger job market more people would enter,” she said.
Shelby asked, “But you basically concede that 11.3% of underemployed people, that is not good in this country?”
“That is abnormally high level, and it signifies weakness that would be good to address,” said Yellen.
In her opening remarks, Yellen touted the widely reported unemployment rate of 5.7 percent but did address a decline in the labor force participation rate.
“Since my appearance before this committee last July, the employment situation in the United States has been improving among many dimensions,” said Yellen. “The unemployment rate now stands at 5.7 percent, down from just over 6 percent last summer and from 10 percent at its peak in late 2009. The average pace of monthly job gains picked up from about 240,000 per month during the first half of last year to 280,000 per month during the second half, and employment rose 260,000 in January.
“In addition, long-term unemployment has declined substantially. Fewer workers are reporting that they can find only part-time work when they would prefer full-time employment, and the pace of quits - often regarded as a barometer of worker confidence in labor market opportunities - has recovered nearly to its pre-recession level,” she said.
“However, the labor force participation rate is lower than most estimates of its trend, and wage growth remains sluggish, suggesting that some cyclical weakness persists,” said Yellen.
Instead of hounding Gov Walker with got-cha questions, the media should be asking Democrat Economist why their economic policies don't work as advertised?
Employment numbers “less rosy” when the books are not cooked to death..
That’s right up there with — “Well, aside from that, how did you enjoy the theater Mrs Lincoln?”
I think QE stopped in October.
Plus the no longer in the work force = 92 Million adults.
Every democrat says the policies are working. They are all liars and they brainwash their stupid voters to believe all the lies.
Ugh I am so sick of it I can not tell you.
Good one!
In other words, the unemployment statistics are BS and not what the average person defines “unemployed”.
The unemployement rate is bogus, accomplished only by moving an ever-bigger segment of American off the roles completely.
93.6 million and (ever) climbing.
Yes.
More news you won’t see on CNN or reported by ABC.
Until the Commie pink fag Kenyan is gone, nothing will improve.
Unexpected.
Well, what do you suggest? Right now, you are in the workforce if you made any attempt in the past four weeks to find a job, including such a simple act as glancing through the job listings or asking a buddy if he knew of any opportunities. That seems about as loose as they can get.
That is an old number.
It is now 93.6 million, actually it now rounds up to 93.7 million.
And ever-growing.
http://www.bls.gov/news.release/empsit.t16.htm
I suggest we (America) bring back American manufacturing.
That is what I suggest.
Yellen either didn’t get Obama’s memo to the Lamestream Media or she is honest. Little evidence that things are picking up
and Obama turns down Keystone jobs, repatriation on cash, and brings in millions of illegals to undercut wage increases and reimployement of long term Americans out of jobs.
Old Yellen needs to tell this to the NY Times, the Washington Post and the other remnants of the mainstream media that have been parroting these phony numbers about a “booming” economy with joy and little critical analysis.
Seem to remember they were going to slowly phase out QE3, not sure that it ended yet, but the point I would like to make is all propping-up the Federal Reserve has been doing.
“However, the labor force participation rate is lower than most estimates of its trend, and wage growth remains sluggish, suggesting that some cyclical weakness persists,” said Yellen.
...
If only she were allowed to tell the truth.
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