Friday, March 4, 2011

How large of an employment problem we really have... the important numbers to look at...

The unemployment rate isn't really the numbers that everyday people see around them in the real world yet its the rate that the media focuses on.  In the real world people that work part time but want to work full time, people that have given up looking for a job; these people are also apart of the equation.  That's the reason the real number that needs to get more attention is the U6 unemployment rate.

FRED Graph

I ran the unemployment rate (red) and the U6 (blue) together so that you can see the difference.  

The impact of this recession has been devastating.  Opponents of the stimulus, those who blocked a better second stimulus, and have scoffed at a third (some haven't) have a lot to answer for.  Unfortunately the Republicans are busy trying to slow economic growth; even worse Obama long ago moved on to re-election so he pushed through a milquetoast 2nd stimulus rather than focusing on how large of an employment problem we really have and using the bully-pulpit to take on the Republicans and Democrats who were blocking a better bill.

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