The True Unemployment Rate is Up a Lot

Nov. 8.  The government jobs numbers came out a few minutes ago.  The business press is happy that there was an increase of 204,000 jobs.  They had feared the government partial shut-down had really soured things.

They were expecting a lot few jobs. HOWEVER, there were a lot of other number worth noting.  For instance the number of workers (the labor force) is down 720,000.

The best employment rate, e-pop, the number employed as a percent of the population took a big hit.  It’s down a full 0.3% to 58.3%.  That’s only 0.1% better than the bottom this decade which was 58.2% in June and July of 2011.  So the true unemployment rate is up a lot.

A similar rate the “participation rate” dropped from 63.2 to 62.8.

The number of people who want full time work, but only work part time rose another 124,000.

And the “official” unemployment rate went up from 7.2% to 7.3%.

Altogether the number unemployed and those who can only get part time work add to 19.2 million people

Cut:  Here’s another drop.  Everyone on food stamps (the SNAP program) gets a cut starting a week ago. A family of three will get a loss of over $300 a year.  SNAP benefits will average less than $1.40 per person per meal in 2014.

Not Cut:   The massive subsidy to the stock market by huge purchases of bonds by the Federal Reserve.  They talk about cutting back, but they never do.  They said the cause of the Great Recession was easy money so now they made interest rates even lower.

Not Increased:  The amount of interest a working person will get if they put their money in an ordinary bank account.   I looked at the First Niagara bank and they’re paying a whopping 0.1% interest rate on a savings account.  So if you put $100 at the start of the year at the end of the year you have $100 plus a dime.

Nov. 10  A piece in Yahoo Business talks about the 3/4 million who left the labor force last month.

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