As reported in the above-linked article, polling company Gallup is reporting that unemployment is significantly worse than being reported by the Bureau of Labor Statistics (BLS): 8.6% vs. the BLS’s figure of 7.4%. And, according to Gallup, the employment picture is taking a significant turn for the worse in August.
Gallup also estimates that U6 unemployment (the broader measure of unemployment that includes the underemployed) is actually 17.7 percent, vs. the BLS’s figure of 14.0%.
These figures corroborate my own estimates of 10.2% (U3 unemployment) and 18.2% (U6 unemployment) – estimates based on the assumption that the labor force grows at the same rate as the population. Even though, prior to the Great Recession, the labor force consisted of 51% of the populaton, the Obama administration would have us believe that, since November of 2007, only 15% of the 14 million people that have been added to our population need to work to support themselves.
It’s refreshing to see that there are some organizations like Gallup that haven’t bought into the economic hype designed to prop up consumer confidence and are willing to tell the truth about the economy.