Unemployment Numbers Released Today Minimize The Problem By Half

The headlines this morning, even on the Huffington Post screamed about unemployment jumping 0.4% to 7.6%. These numbers haven't been seen in thirty-five years, but it is far from the reality of the actual problem we face. Unemployment in this country is a serious problem that continues to get worse, but that single digit number so many people see on their newsreaders is far from accurate. It is only one data point among five others that the Bureau of Labor Statistics uses to gauge unemployment. Their most comprehensive number, the U6, is actually at 13.9% and not even that gets the clearest snapshot of what is going on.

From DailyKos:

But even the U6 figure undercounts, according to other observers, including John Williams, who runs the subscription-only electronic newsletter Shadowstats.com. Williams hasn't yet posted his January calculations, but last month he put the jobless rate at 16.5 percent -- more than double the official rate. His figures include unemployed workers who have been left out of the overall count since "discouraged workers" were dropped during the administration of Lyndon Johnson and other downward adjustments were made in 1994. Those changes mean the official rate can't be fairly compared with the official rate in the 1980s, much less the 1930s.

Last month, Williams told Reuters: "I expect that unemployment in the current downturn, which will be particularly deep and protracted, eventually will rival, if not top, the 25 percent seen in the Great Depression."

According to increases reported at the BLS, Williams' number could be at or above 17%. A much more ominous report than 7.6 percent. The traditional media is trying to coat the story with the thickest amount of sugar as they can. While the media networks must address the seriousness of the problem, no one wants to make comparisons to the Great Depression. However, the American people are feeling the effects of this downturn, no matter what official number is touted.

What it all means is that we need a real, solid stimulus bill to be signed by President Obama as soon as possible. What a shame that Republicans and some conservative Democrats are being allowed to dilute the bill, when what it really needs is to be strengthened.