Unemployment Stats Don’t Tell Whole Story
During the tail end of the Obama Administration, White House spokespersons enjoyed telling Americans how much better the economy was than when they took over in 2008.
Many Americans frowned at those claims, but the administration would point to the unemployment figures – eventually hovering around 5 percent – and say that statistics don’t lie.
Well, maybe they don’t lie, but they also don’t always tell the truth. At least not the whole truth.
If the U.S. economy was so much better when Obama and his people moved out of the White House in early 2017 than it was when they moved into the White House in early 2008, why doesn’t it feel that way to the average American?
Democrat Bernie Sanders and Republican Donald Trump do not agree on a whole lot, but one thing they concur on is that the “real” unemployment rate is much higher than what shows up in the official statistics. Sanders even called the economy “rigged.”
Here are three reasons why many Americans are not confident the economy is as good as some politicians have claimed.
- Wages Aren’t Growing. After being adjusted for inflation, today’s take-home pay is very similar to what it was 20 years ago. Of course, expenses are higher than they used to be, so many folks are either losing money every month or just squeaking by.
- Long-term Unemployment Is High. More than 2 million Americans have been unable to find work despite looking for six months or more. This is approximately double the number of people who are normally in this category.
- Fewer People Are Working. Many adults want to work, but they’ve become so discouraged that they’ve stopped looking. The Wall Street Journal estimates that about 2½ million Americans fit into this group. Fewer than two-thirds of American adults have jobs.
If you’re retired, these are statistics you might not have to worry too much about, at least for yourself. But your children or grandchildren may be very concerned about the situation. And even if you don’t want or need to work, the sluggish economy still negatively affects you in one way or another.
Let’s hope President Donald Trump can help pull us out of these doldrums with his economic policies.
I took a economics class about 20 years ago when I was going to a community college to earn my degree in accounting. I didn’t get to finish due to ending up a single mother.
In that class it was explained that the unemployment rate can only be determined by how many people are actively collecting unemployment checks. So, if you are unemployment has run out you are no longer part of the percentage.
The only way they could get a accurate unemployment rate is to send out polls to each household and ask how many people are in the household…how many are working…and how many that aren’t employed at all are actively looking for or needing work.
I’m currently self-employed. I don’t get full-time hours. I would work for a company, however when looking for employment in what I can do all the employers want someone with a degree and years of experience. I don’t have a degree. I am self-taught and my experience is mostly just doing for myself. I have skills but I lack the costly education. What many employers fail to see is that many people go to schools to get the skills just to make the most money that they can. People that naturally have the skills or teach themselves have a passion for the work the skills are meant for. It used to be that you could be a apprentice. Be paid while you learn. Now you have to pay through the nose for a education that more than often just gets you a piece of paper that says you went to school. That paper doesn’t always get you the job.
I don’t believe in the education system as it is. The only people making money from it are the people who run/own the schools.
Very well put, Wendy. The cost of education has gone through the roof and yet I don’t see that it’s any better than it used to be. Employers should be putting at least as much emphasis on “life experience” as they do on degrees.
That’s politics for you; if you don’t like the numbers then change the way that they are said.
I was working in 2007, by 2008 I was unemployed. Nine years later I am still unemployed. Why? Most employers say that I am too close to retirement age. I am almost 60 years old.
Most employers want to hire part-time workers at less than part-time wages. I call it slave wages. At $7.00 to $8.00 an hour you can even provide gas for your car. At $8.00/hr for 40 hours that is $320.00. When you take out taxes you earn just above $200.00 bucks. This boils down to $800.00 a month.
So if your rent is $1200.00 or more, you are working in the negative. Heaven forbid that you have a family to feed or your wife can’t work to make ends meet. Otherwise, you are so screwed.
Many families have to work several part-time jobs just to make ends meet. They have cut everything to the bone and yet the 1%’ers are making more money than ever before. Why is that?
The price of everything just goes up and up just to maintain the old profit margin that they had before 2008. Power, water, housing, food and so on must increase or they will fail. Do you think for one moment that they passed this increased profit to their workers? Hell no! How else do you think that they are able to maintain their hugh profits? You keep the labor prices low and the product or service that are sold high.
This is why Trump was elected president, to even the field between the have and have-nots. We are tired of telling our elected officials that we’re living in the red with no hope in sight. They keep telling us that they know and understand where we are coming from but we need to be patient while they figure out a solution. That is like telling a drowning man to keep swimming while you figure out a way to throw him the life preserver.
I’m willing to work for pay. Finding someone willing to pay for what I’m worth is a different matter entirely. That is why I use my brain and create opportunities for me to make and earn money. I am self-reliant. If I don’t bring home the bacon then my family won’t have food on the table. That my friends is what it truly means to be an American. You never take things lying down nor do you give up on yourself and you don’t take things for granted. You keep plugging at it. You may fail a thousand times; but you only need to succeed only once to make it all worth it.
You are an incredible man Cliff. Your family is lucky to have such aman to look up to. Thank you for sharing that the American Spirit is still strong and thriving! We just have to convince our young adults that to “live free” is worth every effort we can make and that FREEDOM isn’t free. It is honored and perpetuated by each of us!
God speed Cliff!
With 95 million Americans out of the work force, who gave up looking for work, NOT being counted in Obama’s 5% unemployment figure doesn’t hold up! Proof that when facts don’t agree with DemCom story line they do what DemComs do best, They LIE!