Any idea how many jobs would have actually have to been added to the economy for this kind of drop?
Watch for this to become an issue.
quote:U-6, which is the same (at 14.7%) as it was last month, when U-3 was 8.1%. This shift from full time to part time is the difference.
600,000 new part-time workers since last month.
I've been away quite a lot lately. What sector did these jobs get added in?
HA HA HA HA HA HA HA HA HA HA
What is U-3 and U-6?
U1 : Percentage of labor force unemployed 15 weeks or longer.
U2 : Percentage of labor force who lost jobs or completed temporary work.
U3 : Official unemployment rate per ILO definition.
U4 : U3 + "discouraged workers", or those who have stopped looking for work because current economic conditions make them believe that no work is available for them.
U5 : U4 + other "marginally attached workers", or "loosely attached workers", or those who "would like" and are able to work, but have not looked for work recently.
U6 : U5 + Part time workers who want to work full time, but cannot due to economic reasons.
Below is the overview of these six measures.
This is the proportion of the civilian labor force that has been unemployed for 15 weeks or longer. This unemployment rate measures workers who are chronically unemployed. During business-cycle expansions, this rate captures structural unemployment. However, during lengthy business-cycle contractions, this rate is also likely to include a significant amount of cyclical unemployment. U1 tends to be relatively small, in the range of 1-2 percent.
This is the proportion of the civilian labor force that is classified as job losers (workers who have been involuntarily fired or laid off from their jobs) and people who have completed temporary jobs. During business-cycle expansions, this rate is likely to capture some degree of frictional unemployment. However, during business-cycle contractions, this rate is most likely to consist of cyclical unemployment. U2 is larger than U1, but still remains substantially less than the official unemployment rate (U3).
This is the official unemployment rate, which is the proportion of the civilian labor force that is unemployed but actively seeking employment.
This is the official unemployment rate that is adjusted for discouraged workers. In other words, discouraged workers are treated just like other workers who are officially classified as unemployed, being included in both the ranks of the unemployed and the labor force. It is technically specified as the proportion of the civilian labor force (plus discouraged workers) that is either unemployed but actively seeking employment or discouraged workers. The addition of discouraged workers generally adds a few tenths of a percentage point to the official unemployment rate.
This augments U4 by including marginally-attached workers to the unemployment rate calculation. Marginally attached workers are potential workers who have given up seeking employment for various reasons. One of these reasons is that the workers believe such effort would be futile, which places them in the discouraged worker category. Those who have other reasons for not seeking employment are placed in the broader marginally-attached workers category. The addition of marginally-attached workers adds a few more tenths of a percentage point to the official unemployment rate.
This augments U5 by including part-time workers to the unemployment rate calculation. The addition of part-time workers adds a full 2-3 percentage points to the official unemployment rate. This measure of unemployment is perhaps the most comprehensive measure of labor resource unemployment available.
Because if the drop is purely attributable to 600,000 people going from full time status to part time status, then this U-3 number is worse news than the 8.1% of last month was.
Oh, I completely get that.
I mean "becoming an issue" as in, how will this become an issue, exactly? This is going to either be swept under the rug, touted as the "new normal", or will be spun as a positive.
Obama and his media know no bound