The Real Unemployment numbers

An independent study suggests that the unemployment rate is actually more than 20 percent. But as usual with all the studies, it is hard to pinpoint how much. The study says more than 22 percent, but it could be more or it could be less. The point the study was making is that do not believe what the government shells out every month. Because the person who does not receive unemployment benefits is not counted, and who have exhausted their benefits is not counted either. Those who have simply dropped out of the market due to lack of jobs or frustration about the jobs are not counted either. Adding the underemployment and those who wanted to be employed but who opted for undergraduate and graduate school and the number of unemployed does not look pretty.

Indeed the government’s broadest measure of unemployment which does not get much news attention stands at more than 16 percent. So the unemployment numbers are way much higher than the government reports now at 9.5 percent. And this number becomes the basis of stock market rally or not. If as the news says that one job is available for every five job applicant, then it is automatically assumed that the rate is now 20 percent. But does the government advertise that number. No because at the risk of destabilizing the markets, they are not reported. It is high time now to reveal the true unemployment numbers so that the gravity of the problem is acknowledged and tackled accordingly.