Real Unemployment Rate Is Over 30%


What would you say if I told you that the real unemployment rate in America is at least 30%? Would you call me a tin foil hat conspiracy theorist? Hear me out because I can back up that claim if you will give me a few minutes of your time.

The official unemployment number for last month was 7.3%. A lot of Americans don't understand how this number is calculated and it is very misleading.

The Bureau of Labor Statistics tracks six official unemployment rates as follows:

  • 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 persons marginally attached to the labor force, as a percent of the civilian labor force plus all persons marginally attached to the labor force
  • 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

(Source: Bureau of Labor Statistics)

unemployedWhen we speak of a 7.3% official unemployment rate for October of 2013 those numbers are based on U-3. The U-6 number was dramatically higher at 13.8%. Those are not my numbers. That number comes directly from the Bureau of Labor Statistics.

The government doesn't want to use this 13.8% number because they are afraid how the American people might react.

But what if I told you that the 13.8% number is still way too low? I am not even referencing any Census Bureau cheaters. I am telling you that these numbers are skewed whether Census workers are fudging numbers or not.

I want to show you a chart and I want you to soak it in as much as possible. Take your time because this is something your government will not tell you. The chart is from June but the numbers are pretty close to where they are today.

unemployment-breakdown-june-877x1024
 

Source: Richie King, qz.com h/t Forbes

Do you see that big number of people who do not want a job? That was 87.1 million Americans in June. This includes some who can't work obviously but if there are not 87.1 million people who can't work in this country. Certainly there are some disabled people that would qualify for that classification.

What many people do not understand is that unemployment rates do not officially include people who are no longer looking for work because they have given up. The rates also do not include those career welfare seekers who should work but refuse to. Are these people not unemployed?

If a lazy 29 year old is living in his Mom's basement, and playing World of Warcraft all day, is he not unemployed? Just because he wants to mooch off his parents or the system that does not mean he is not unemployed.

So where do I get this 30% number?

Have you ever heard of Investor's Business Daily? I am sure most have.

Would you agree that this is a credible source for economic data?

Check out what IBD had to say on the subject:

The government's official unemployment report in September showed 11.3 million people, or about 7.3% of the labor force, without jobs. Not good, but not disastrous, right?

Well, those data exclude a lot of people — particularly the millions of discouraged workers who have simply given up looking for a job. So the real unemployment number is bigger — a lot bigger.

In our IBD/TIPP Poll, we ask a different question: "How many members of your household are currently unemployed and are looking for employment?"

Not surprisingly, the answer we get differs greatly from the government's data. This month's survey, completed Thursday night, indicated that 47.9 million Americans are looking for work. No, that's not a misprint: 47.9 million.

Out of a workforce of 154 million, that yields a gross unemployment rate of 31%. Among all households, 26% have at least one member looking for work.

We also find data on "Job-Sensitive Households" — those with one or more people looking for work plus those saying they're "concerned" about a member of the household losing a job. That number is 31%, up from 23% as recently as April.

Our country's labor markets, in short, are in far worse shape than you've been led to believe.

*Emphasis added

Why does the government lie to us about the real numbers? Because they know that if Americans realized how bad it actually is that we would do what Tea Party Patriots are already talking about. We would revolt.

Just because a person is either too lazy to look for work or too discouraged from not being able to find a job for a long time, it does not mean that they have magically ceased to be unemployed.

The truth is that the government lies to you about these things.

And before you jump on the republican band wagon, please understand that most of them are aware of these numbers. They are simply complicit in the cover up. This is not something that started with Obama, but it is worsening under his leadership.

So if you are out of work or underemployed do not take it personally. You aren't so unmarketable that 92.7% (100% minus 7.3%) of the country can get a job and you can't. I used to think that. I'm a smart guy. How is it that 93% of people are working and no one wants me?

The truth is that you have a lot of company and you have been lied to.

So are we mad yet?

Are we going to ignore the problem while we drink beer and watch football today?

That's what the government is counting on. They do not respect us and don't think we have the guts to take action.

Someday I hope that we prove them wrong.

Don't forget to Like Freedom Outpost on Facebook, Google Plus, Tea Party Community & Twitter.

You can also get Freedom Outpost delivered to your Amazon Kindle device here.






Comments

comments

  • Greg Gulliford

    Do we know what the unemployment rate is for different educational backgrounds?

  • junktex

    And we are in a depression

  • Joel Orlando

    Re: why some folks simply "give up".

    "So I see that you've been unemplyed for the last eighteen months. So what have you been DOING during that time?"
    "Well, I'm married with two school-aged children and I help to care for an elderly parent as well. I volunteer at the local senior center twice a week, I'm active in local politics and with the local historical society too. I sell music memorabilia on Ebay and I do freelance IT work on the side. I've also been helping an old friend rebuild his house after last year's storm. So between that and the job searches I keep myself fairly active."
    "Oh, OK. So, tell me where you see yourself in five years."
    "Well, if I'm fortunate enough to get the $12 an hour job at your discount ceramic tile factory outlet store, I hope that five years from now I'll be a valued and productive member of the Cheep Tiles 4U team."
    "Thanks. Your urinalysis appointment is scheduled for 8am tomorrow at a location forty minutes from where you live. We will be in touch within 4-6 weeks."

    When I did the math I learned that i was actually losing a substantial amount of money every month simply leaping through hoops. Driving back and forth to interviews and pre-employment screens and presentations and sitting by the phone all day while cash opportunities passed me by, I had to start making money for myself and being more selective about what potential employers were worth putting the time into. There are plenty of others like me out there too, people who had no choice but to abandon the job hunt circus in favor of cash money opportunities. It's tough to waste half a day driving somewhere to urinate in a cup to prove to some faceless corporate drone that I'm not "on dope" especially when you know there's a 90% chance they'll never even bother to take the time to contact you again.

  • David Mowers

    Thirty-Seven Trillion Dollars in financial assistance given out by Congress and the Federal Reserve since 2008; but only to the rich.

    37,000,000,000,000

    Amazing how socialism for the wealthy doesn't seem to be saving our economy?

  • sal98

    The IRS only gets returns from 45% of the population. This means the unemployment rate is 55%.

  • J J

    That's a wonderful part of your legacy, Obama!!! You should be ashamed of yourself for not caring any more than you do, for lying to the American people and for putting your personal, political future ahead of the job you were elected to do!!

  • Petemer

    The article is very good and needs to be talked about more. I saw a similar example on Fox that said using the methodology for computing unemployment in 1980 our rate today would be over 25%. What will the numbers look like when the LIAR Rubio gets his amnesty and reform through that will add at least 33 million more workers, all of them competing with us for non existing jobs. Those numbers don't include the human suffering of falling wages or that over 70% of all new jobs are part time with no benefits. The only winners are people like Soros and Zuckerberg who are willing to spend tens of millions to defeat anyone who opposes the Liar Rubio and his amnesty open borders plan so that they can have a steady stream of cheap labor in order to gain additional billions for their treasure chest. Politicians from both parties seem to care only about campaign money with very few of them caring about what the effects of their actions have on us.

  • firehammer

    Like the moment below says, the self employed are struggling as well. I used to work 5-6 days a week booked solid. Now it's a few days a week at best.

    • Padraigin

      Yep, Firehammered, worldwide, even here in sunny much of the time and sometimes chemtrailed geoengineered South Africa, the working daze are a figment of many a person’s imagination, with educated, experienced, skilled, white males aged 40's and above, a decimated species, last in the slave wage line, a few days a week, "positively discriminated" against, as she is written into the Constitution, that's how we eke out a so-called living. Persevere my son, no matter the situation, even when you are standing at the traffic lights, proudly holding up your cardboard message "Family gone, friends few, spare a dime and kcuf the new world disorder and their sycophantic minions, if you please".

  • greyhound44

    The usually reliable shadowstats dot com had the figure for month end Oct at 23.5%.
    Their data is usually posted on the 1st Friday afternoon (or a bit later) of each month.
    The BLS dot gov Bogus U 3 and U 6 are typically available on the 1st Friday morning each month.

  • Thomas Klein

    We lost this country as soon as we lost an objective press, without that fourth branch of government, checking the facts, and digging, and accurately reporting them to the American public, the government is free to make up anything they want, and that goes for Republicans as well.

    • Stephen Stingel

      He who controls the media, controls the masses.

      We have the same problem here in Australia, although nowhere near as bad (yet). Unfortunately, other nations and governments around the world see the US as a role model, which is not a good thing at this present time.

    • David Mowers

      "Remember it sober, the third of October, the bail out, treason and plot. I know of no reason why the bail out treason should ever be forgot."

  • maryatlanta

    That explains a lot. This administration is one big lie, their numbers never add up. Why does anyone believe the Obama admin? Re: healthcare; there are a lot more Americans without employer provided insurance or who are individually insured than is being published. The numbers do not add up.

    • maryatlanta

      I've always liked IBD. Straight news. Follow the money.

  • KurtofLA

    Well, we would not elect an honest man to the WH so what are we complaining about? Our government has lied to the sheeple since 1776

  • gotham1883

    Well said.

  • cajunwarthog

    Barry lie to the American people, No Way! He is a man of the highest integrity and would not mislead us in any fashion. Surely there must be some mistake. After all. he gave us free healthcare, he has protected our borders, he loves our military, and he follows the Constitution honorably. His cabinet members are loyal to the Constitution and work for the betterment of this Nation.

    Gosh, even pretending to believe this crap make me want to puke.

    • osteomed

      The depressing thing is, cajunworthog, many US dullards truly believe what you sarcasticly posted!!

    • cajunwarthog

      Very depressing...

    • osteomed

      You said it, cwh (sorry to have shortened your handle, cajunworthog)

    • junktex

      Free healthcare?We could have single-payer on a fraction of what those unwinnable wars cost.Obamacare is a giveaway to the insurance companies.

    • cajunwarthog

      Junkex,, read my comment again, it was all a "joke",,,,, sarcasm. This "free health" was never about healthcare, its about chaos, control and money.

  • Jeffrey Grimes

    I was deemed unemployable by the State of Michigan for over nine years, due to my suffering Post-Concussion Trauma from a young age, and that injury being permanent due to the Ritalin and Tofernil they pumped me with in elementary school.

    Now, they tell me I can go out and get a job, when they've all been handed over to back-breaking slave laborers in China. We need to take our country, our jobs and our livelihoods back from these scumbags.

    • gotham1883

      The globalists no longer listen to Americans. They think Americans are all nationalists and they have scammed everyone that nationalists are all Nazis, even though globalists are all communists/totalitarians/nazis combined. The globalists are traitors to our country.

    • Jeffrey Grimes

      Then perhaps it is time we make them listen.

  • HonorandDuty

    And to add to all of it, lets take my parents as an example. They are in their sixties and have only their social security money coming in (plus what I send them every month to help make ends meet). They have been trying to pick up some PART time work at the grocery and retail stores and have had absolutely no luck. They can't even land an interview. I am sure there are many more people in thier shoes but are considered "retired" and not looking. Wonder what they would add to those numbers.

    Lets not even go into Obamascam...

    Keep your powder dry, folks...

  • Smarty

    What Dean doesn't include, is all of the self employed people that are just hanging on because the industries they rely on are depressed and can't/don't hire them as often as they used to. These work sources for the self employed are "doing without" or cutting way back, thus making many self employed people "under-employed" people as well. I'd jack the number up to 40% or more if you include those people in the calculations.