The roughly 4% unemployment rate measures something very different from what people often hear in the mainstream media or from well-meaning thought leaders: “all-time low,” “full employment” and similar descriptions.
They are mistaken.
The government also reports a measure called U-6. It includes the unemployed people, those “marginally attached” to the labor force and people working part time who want full-time work. The U-6 measure raises the 4% to about 8%….
The monthly number today of about 4% represents roughly 6.5 million Americans who are unemployed, looking for work and not working.
When including prime working-age (25-54) men and women “not working,” what I call real unemployment is closer to 12%. About 22 million out of work.
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