Samhain
DP Veteran
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- Sep 30, 2011
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Re: Sessions: 'For Every One Job Added, Nearly 5 People Left the Workforce'
U5 is the one that adds marginally attached workers, not U6. U6 adds part timers that want full time work, and the marginally attached.
What we have today, is a dramatic shift to workers only showing up in the surveys if you examine U4, U5, and U6. Unfortunately, they haven't surveyed those rates prior to 1994, so we can't really see a long term view, although in the late nineties, U6 dropped from 10% to 7% by 2002. U6 appears to be a leading indicator to a recession, as it shows movement long before U3 does.
U-4 includes discourage workers. Discouraged workers are individuals that specifically state they are not looking for a job because of market conditions. This number was 7.2% in December
U-6 includes persons "marginally attached to the labor force".
No the U6 number is used because it's remarkably higher than the U-3 number . A lot of people are used to hearing the u-3 number used so in good times they associate a 4% unemployment rate as normal. When they hear 14% U-6 used by some folks as the "real unemployment number" then they think "wow! It's much higher than normal". Even during the 90's U-6 hovered around 9%.
U5 is the one that adds marginally attached workers, not U6. U6 adds part timers that want full time work, and the marginally attached.
What we have today, is a dramatic shift to workers only showing up in the surveys if you examine U4, U5, and U6. Unfortunately, they haven't surveyed those rates prior to 1994, so we can't really see a long term view, although in the late nineties, U6 dropped from 10% to 7% by 2002. U6 appears to be a leading indicator to a recession, as it shows movement long before U3 does.