The federal government uses metric analysis to determine unemployment numbers each month, and sometimes per week. However, those metrics are skewed by political anomalies put in to try to make the numbers fit the agenda. For example, the nefarious birth/death rate assumptions which have no true basis for statistics, but in reality keep the numbers low to form a more positive, or less negative outlook on unemployment.
You can see this a few months back when the unemployment report showed a loss of 400,000+ jobs in a week, but the unemployment percentage went from 9.8 to 9.6. That is statistically impossible, unless you are putting in variables that skew the true numbers, which the government does through the birth/death rate model.
Gallup, in an article dated October 18th, came out with a poll showing true unemployment numbers by simply collecting a range of data from several age groups and regions.
Gallup classifies American workers as underemployed if they are either unemployed or working part time but wanting full-time work. The findings reflect more than 18,000 phone interviews with U.S. adults aged 18 and older in the workforce, collected over a 30-day period. Gallup’s results are not seasonally adjusted and tend to be a precursor of government reports by approximately two weeks.
According to Gallup’s findings, the current unemployment rate in America as of mid-October is 10%, and expected to rise in early November.
The underemployed rate in the findings shows 18.6% of Americans are working in jobs that provide less than 40 hours per week, or provide wages well below a common standard of living.
(You can see the charts of each segment of unemployment in the slideshow to the left)
Continued unemployment or underemployment has vast ramifications to our economy. Since our GDP is now based on 70% service oriented jobs versus manufacturing, those who do not have the income to spend on goods and services subsequently keep tax revenues for the government coffers down, lead to business slowdowns and closures, and finally, create a burden for the government in the form of social services such as welfare, unemployment insurance, and food stamps.
Unfortunately, the government is not in the truth game, but in the perception game. By skewing data and statistics, it creates an environment where people do not have the true picture of the economy, and leads to an apathy of where we are at in a recessionary cycle.
As Mark Twain once wrote:
There are lies, damned lies, and statistics.