This is in reference to:
Unemployment Hits 8-Year Low Despite Subpar Jobs Report | The Daily Caller (4.9%).
The “official” unemployment rate that is reported so gloatingly in the news is the U3, which is defined so as to produce the lowest possible number, and is based on the number of people reported to be looking for a job but not finding one. That’s how we get the 4.9% reported this week. (See the definitions of U1-U6 in Unemployment – Wikipedia
I submit two propositions. In view of the fact that the definition of U3 has been tweaked several times over the past years and decades, we can declare with a straight face that:
1. The true U3 unemployment rate is zero.
Everybody who really wants a job, has a job; any job. Period.
All those who don’t, either
(a) don’t want to work, or
(b) are too lazy to be looking for work, or
(c) too stupid to find and get a job, or
(d) too picky.
Whatever; they don’t count.
In fact the government can ALWAYS claim that the U3 is zero.
2. The de facto unemployment rate is very simply the percentage of working age adults who don’t have a job, for whatever reason. (This one is closest to, but still not the same as, the BLS definition of U6, the “true” unemployment rate.) Only two numbers count:
That makes the de facto unemployment rate = 94/204 = 46%
That’s nearly 10 times the “official rate.”
So there you have it. Either 0bama is a hero because the unemployment rate is zero, or 0bama is a hero because his program of fundamental transformation has been spectacularly successful and resulted in a record number of American who do not, and apparently do not have to, work for their own sustenance. What a guy.
Now just tell me which one, the “official” rate or the “de facto” rate, is a more truthful indicator of the health of our economy.