Sunday, January 2, 2011

Unemployment Lies

When it comes to knowing unemployment rates one must dig under the surface.  "U 6" is the better metric of unemployment when it comes to the Bureau of Labor Statistics, but that metric is flawed.  It does not count anyone not searching for work, anyone who is working part time, and it fails to count disgruntled workers.

I thought about it when watching Bernanke  refer to  "U 3" in his interview on 60 Minutes.  It amazes me the country does not even look into the difference between "U 3" and "U 6" never mind the obligatory (B)ureau of (L)abor (S)tatistics.  They are deviants, these measurements.  The acual unemployment should include veterans, and all the terms mentioned above.

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