http://www.nytimes.com/...
http://www.bls.gov/...
http://www.bls.gov/...
http://online.wsj.com/...
The real (U6) unemployment rate is 17%. But you'd never know it by the New York Times and most other papers and media.
They advertise it at 9.8%.
Jobless Report Is Worse Than Expected; Rate Rises to 9.8%
By JACK HEALY
Published: October 2, 2009
The American economy lost 263,000 jobs in September — far more than expected — and the unemployment rate rose to 9.8 percent, the government reported on Friday, dimming prospects of any meaningful job growth by the end of the year.
The U3 "unemployment rate" -- the massively publicized one -- does not consider those who have stopped looking because they've lost hope, but still want a job. The U3 plus this factor plus others (see second link for DOL's "alternative rate", or U6) -- equal the real unemployment rate (U6).
I've read dozens of articles about people who want to work but have lost hope. Why do they no longer count as "unemployed?" They are in fact unemployed, are they not? Why does the DOL and the media pretend they do not exist?
Yes, it's on a harder to get to DOL site -- called the ALTERNATIVE rate. And sometimes it's mentioned briefly in the middle of an article. Whoopee.
The NYT, for example, links to the U3 Rate but does not link to the U6 rate.
The U3 rate is 9.8% (first DOL link)
The real unemployment rate -- U6 -- is 17%. (second DOL link)
The popularly known "unemployment rate," U3, in other words, DOES NOT MEASURE THE ACTUAL RATE OF THE UNEMPLOYED TO THE TOTAL WORKFORCE. It measures the rate of a PIECE of the unemployed in the total workforce.
In other words, it's a lie.
The only question before us, then, is why the media perpetuates this fraud. Why do they?
They know better.
UPDATE:
On this very topic from the Huffington Post:
http://www.huffingtonpost.com/...