3.63 PERCENT (%)

Sometimes you just can’t listen to it anymore without your head exploding. The
current administration who told us inflation was transitory is now telling us there
is no recession because they have created 8+million jobs with 3.6% unemployment. Hmmm, really?

Question: When is 3.6% NOT 3.6%? (Jeopardy theme please).

Answer: One of the most misunderstood stats is the “unemployment rate.”

First, definitions: Labor force = the number of employed + unemployed who supply goods and services.

Unemployment rate, we are told, = # unemployed divided by labor force.

Here’s the kicker. If you drop out of the labor force, you are not counted as
“unemployed.” So, if you are receiving stimulus checks, taking advantage of rent
moratorium, excused from paying your student loan, still scared of covid, won’t
travel because gas is too high, living in mommy’s basement, or dozens of other
excuses not to work, you are not counted in the unemployment rate. Are you unemployed? Yes. Are you counted? No.

The real meaningful number that accurately portrays the state of labor is the Labor Force Participation Rate, ie: how many people ARE working. Comparing that in pre-pandemic February 2020 to the current Aug 2022 #, there are….. ready?….. just over 3 million FEWER people working. Hellooooooo!!

Sorry Joe, you have created zero new jobs. Those who are working merely returned to work after the national lockdown. The real unemployment rate is certainly in double digits. We are in a recession. BTW, even their unemployment rate is about to go up. Thanks Fed!

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