linkedin | Here’s something that many Americans -- including some of the smartest and most educated among us -- don’t know: The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading.
Right now, we’re hearing much celebrating from the media, the White
House and Wall Street about how unemployment is “down” to 5.6%. The
cheerleading for this number is deafening. The media loves a comeback
story, the White House wants to score political points and Wall Street
would like you to stay in the market.
None of them will tell you this: If you, a family member or anyone is
unemployed and has subsequently given up on finding a job -- if you are
so hopelessly out of work that you’ve stopped looking over the past
four weeks -- the Department of Labor doesn’t count you as unemployed.
That’s right. While you are as unemployed as one can possibly be, and
tragically may never find work again, you are not counted in the figure
we see relentlessly in the news -- currently 5.6%. Right now, as many as
30 million Americans are either out of work or severely underemployed.
Trust me, the vast majority of them aren’t throwing parties to toast
“falling” unemployment.
There’s another reason why the official rate is misleading. Say
you’re an out-of-work engineer or healthcare worker or construction
worker or retail manager: If you perform a minimum of one hour of work
in a week and are paid at least $20 -- maybe someone pays you to mow
their lawn -- you’re not officially counted as unemployed in the
much-reported 5.6%. Few Americans know this.
Yet another figure of importance that doesn’t get much press: those
working part time but wanting full-time work. If you have a degree in
chemistry or math and are working 10 hours part time because it is all
you can find -- in other words, you are severely underemployed -- the
government doesn’t count you in the 5.6%. Few Americans know this.
There’s no other way to say this. The official unemployment
rate, which cruelly overlooks the suffering of the long-term and often
permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.
And it’s a lie that has consequences, because the great American
dream is to have a good job, and in recent years, America has failed to
deliver that dream more than it has at any time in recent memory. A good job is an individual’s primary identity, their very self-worth, their dignity --
it establishes the relationship they have with their friends, community
and country. When we fail to deliver a good job that fits a citizen’s
talents, training and experience, we are failing the great American dream.
Gallup defines a good job as 30+ hours per week for an organization that provides a regular paycheck. Right
now, the U.S. is delivering at a staggeringly low rate of 44%, which is
the number of full-time jobs as a percent of the adult population,
18 years and older. We need that to be 50% and a bare minimum of 10
million new, good jobs to replenish America’s middle class.
I hear all the time that “unemployment is greatly reduced, but the people aren’t feeling it.” When
the media, talking heads, the White House and Wall Street start
reporting the truth -- the percent of Americans in good jobs; jobs that
are full time and real -- then we will quit wondering why Americans
aren’t “feeling” something that doesn’t remotely reflect the reality in
their lives. And we will also quit wondering what hollowed out the middle class.
