Free Markets, Free People


Unemployment Rises

Today’s news of 131,000 jobs lost last month comes as no great surprise. What should also come as no great surprise is that the official unemployment rate of 9.5% continues to seriously underestimate the actual rate of unemployment.

Civilian population: 237,890,000
Historical Average Labor Force Participation Rate: 66.2%
Proper Labor Force Size: 157,483 000
Actually Employed: 138,960,000
Real Unemployment Rate: 13.3%

Using the same method of calculation, the unemployment rate in June 09 was 11.4%. Over the past six months, the rate had varied as follows:

Feb: 13.2%
Mar: 13%
Apr: 12.7%
May: 12.8%
Jun: 13.1%
Jul: 13.3%

Since April, 495,000 payroll jobs have been lost.

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11 Responses to Unemployment Rises

  • Unexpectedly.

    • Indeed, it’s amazing what is unexpected when one goes through life with their head up their anus. :-(

  • Do any of these numbers include the out of work self-employed, who may have been doing business as a sole proprietorship or a single member “disregarded entity” limited liability company or the like?

  • Sure!  A few jobs have been lost, but we’ve saved or created millions to replace them!  We have!

    O.0

    Uh, uh  It’s Bush’s Fault!!!!

  • Sun rises in the East.
    Obamanomics lead to higher structural unemployment.
    BIG GOVERNMENT ruins.
    la.

  • Colocomment – I am sure it doesn’t include independent contractors, such as myself.  I never appear as unemployed when I have no work, such as right now, AND I can never apply for unemployment.  We are the “invisible” unemployed.

  • Hi:

    Could you clear up that “civilian population” bit.

    According to the CIA fact book, the US has 310,232,863 (July 2010 est.).

    At face value, that is a difference of 72 million.
     

    • Perhaps not counting children, the elderly, or those otherwise not normally able to work?

  • I have a question about your arithmetic.  You take the difference between the proper labor force and the actual employed and then divide that by the actual employed to get 13.3%.  Shouldn’t you be dividing by the proper labor force instead?  If so, this gives a rate of 11.7%.

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