WSJ: Real Unemployment Rate 11.8 Percent

Friday, 13 Apr 2012 10:11 AM

By Newsmax Wires

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The official unemployment rate remains at an ugly perch of 8.2 percent, despite declines in recent months. But even that lofty level understates the magnitude of the jobs problem, according to a Wall Street Journal blog by Paul Vigna.

He looks at the issue in terms of the labor force participation rate. That measures the percentage of working-age Americans, excluding those who are in jail or the military, who are “participating” in the work force. That includes both people who have a job and those looking for a job.

The rate has been dropping since January 2007, when it stood at 66.4 percent. The reading fell to 65.5 percent in July 2009, even as the Great Recession was officially ending, and currently registers an almost 30-year low of 63.8 percent.

Taking that drop into account produces a higher jobless rate. If you apply the July 2009 participation rate to today’s jobless numbers, that generates an unemployment rate of more than 10 percent. And if you utilize the 2007 participation rate, you’re left with a jobless rate of 11.8 percent.

“That means fewer people to contribute to economic growth. Fewer people to pay taxes. Fewer people to help the U.S. earn its way out of a $15 trillion debt hole (if indeed anybody thinks that’s even possible),” Vigna writes.

Editor’s Note
: Economist Unapologetically Calls Out Bernanke, Obama For Mishandling Economy. See What They Did.

© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Booker, Cantwell Will Push to Revoke NFL Nonprofit Status

Friday, 19 Sep 2014 12:08 PM

On the heels of domestic battery scandals that have rocked the NFL, the organization may take a beating financially if N . . .

2 Vietnam Vets on March to Washington for Tahmooressi

Friday, 19 Sep 2014 11:59 AM

Two senior citizen Marine vets are hiking nearly 300 miles carrying a message for President Barack Obama - free U. S. Ma . . .

Rep. Royce: In ISIS Vote, A 'No Ground Troops' Message

Friday, 19 Sep 2014 11:39 AM

Congress approved President Obama's plan to train and equip the Free Syrian Army to fight against the Islamic State to s . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved