Monday, April 6, 2009

15.6% Unemployment?

What would happen if you woke up tomorrow and read that unemployment soared to 15.6%? How do you think the stock market would react to that? I would surmise that we would have a total collapse.

For years, I mentioned how we cannot believe any of the statistics coming from the government. I always pointed to the inflation stats as proof: the government only charts "core" inflation which excludes food or energy prices. How can that be? Aren't these the two things that every family needs. The run up in oil prices last summer showed how families are affected even when "inflation" is contained.

Now, the vital statistic is the unemployment figure. This is the number believed to reflect the state of the economy. With last weeks announcement of March job loses, we are not at 8.5% unemployment. Or are we? Remember, we cannot believe the government's statistics.

There is another statistic which presently sits at a much higher number: 15.6%. It is the underemployment figure. The national unemployment rates only account for those who are filing or receiving unemployment benefits. Part time workers are excluded from those figures. So too are those who dont fit the criteria to file for unemployment.

Here is an article which spells out the true situation.

As you can see, there are a lot more people who are out of work than reported by the government. This articles explains how some of those in the 15.6% category are underemployed by working part time. Yet, there are also those out of work who do not receive benefits. How many are these? Do they add 1% to the unemployment figure? 2%? 4%? We do not know.

What we do know is there are a lot more people out of work than reported by the government. One sector rarely mentioned is the small business owner who closes up shop. This person is usually ineligible for unemployment compensation. Therefore, every small shop that closed up in the last year most likely put someone out of work. In my town, there are dozens of places which I know about that are no longer there. Where did all these people go? Some might have found other jobs. However, my guess is that most did not.

The point that I am making is that the unemployment situation is much worse than the government is letting on. True unemployment is already hovering around 10% (perhaps greater). When coupled with those who took a cut in hours thus becoming part time, we see that number jump to 15.6%. This is the number that the government ought to track. Yet those in charge do not want it out how bad things really are.

Do not believe the government. Those who are in charge are corrupt and will lie to protect their interests. The fact that the employment situation is twice as bad as they let on is an indication that they care little for the American people. Someday people might realize the government is their enemy.

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1 comment:

NetBizSavvy said...

This article makes me think of this quote, "Seasonal unemployment was found to be a state which does not have much employment, for example, rural areas."

Which reminds me that on May 6, 2009 there will be an occasion, from 8am-3pm at the Chase Center on the Riverfront for The Delaware Job Hunters Education and Networking Event. This important and timely event is being held to provide education to Delaware job seekers to improve their job search skills and gain a competitive edge in today's job market. The event will also provide attendees the opportunity to meet with local companies to learn about job opportunities. This is a FREE event.

To register for the event call Joyce Dungee Proctor at 302-504-9922 or visit and click on seminars and choose the Delaware Job Hunters event to register.