There is an old saying that figures never lie, but liars figure. This is never more prevalent than in government. There is an old question that asks how can you tell when politicians are lying and the answer is when their lips are moving.
Consider this. Unemployment is down according to the government figures. Late figures concerning unemployment in Ohio tags the rate at 8.5% unemployed, about the same as the national figure. But wait. That’s based on a U-3 rating. U-3? Yes, one of six calculations for measuring unemployment. With the government there are different categories of not having a job.
The U-3 unemployment figure, the official government reporting figure which is touted in the news, only counts those people who are unemployed and are actively seeking a job. These folks are drawing unemployment checks along with those in U-1, those who have been unemployed for at least 15 weeks, and U-2, who have recently lost a job or finished a temporary job, classifications. These are easy figures to count as they are listed on government lists of those on the public dole.
U-4 lists those who are listed in U-3, plus those who have just given up and have quit looking for employment. The government calls them discouraged workers, government-speak for quit looking for employment, who are no longer on the government dole, and are starting to fade away from government attention.
U-5 is made up of those workers who are “loosely or marginally attached”, in government-speak, and is made up of workers who would like to work but have quit looking because they feel that it isn’t worth the effort.
Lastly, U-6 combines the previous five categories plus people who are only working part time. This is the real unemployment rate, not the rate posted by the government. In truth, U-6 is generally twice as high as U-3. Since U-3 numbers are based on non-employed folks on the public dole, it is easy to count the number of checks sent out each month, but half the idle working population don’t get anything.
Taking this one step further the newly unemployed, U-3, who apply for unemployment benefits is another interesting government figure, especially when one understands why it is used instead of the all inclusive U-6. The government says, “Wow. Things are really getting better because new unemployment claims are down last month.” Look at it another way and it doesn’t look as great.
Say you have a hundred workers and you lose 10% a month, and those go on unemployment welfare. First month, new claims are 10 people. Second month, from 90 workers, the 10% loss equals 9 people. Third month loss is 8 people, and month four is only 7 people. The way the government figures it, things are getting better. As the figures show, claims for unemployment have been less for three consecutive months, a very encouraging situation. Not as many people have been laid off so we’re out of the woods. To make matters even better at the end of a year, according to governmental logic, the unemployment problem has been lessened as there were only three people who qualified for inclusion in the U-3 category. A victory for government planners who proudly state that applications for unemployment benefits have decreased by 60% in only a year. What they fail to mention is that instead of 100 workers in your business, there are now 28.
Granted, this illustration is on the exaggerated side but the principle is correct. The government doesn’t want the true figures out.
In truth, the official unemployment rate in the United States is not 8.5%, it is really 15.2%.
Consider this. Unemployment is down according to the government figures. Late figures concerning unemployment in Ohio tags the rate at 8.5% unemployed, about the same as the national figure. But wait. That’s based on a U-3 rating. U-3? Yes, one of six calculations for measuring unemployment. With the government there are different categories of not having a job.
The U-3 unemployment figure, the official government reporting figure which is touted in the news, only counts those people who are unemployed and are actively seeking a job. These folks are drawing unemployment checks along with those in U-1, those who have been unemployed for at least 15 weeks, and U-2, who have recently lost a job or finished a temporary job, classifications. These are easy figures to count as they are listed on government lists of those on the public dole.
U-4 lists those who are listed in U-3, plus those who have just given up and have quit looking for employment. The government calls them discouraged workers, government-speak for quit looking for employment, who are no longer on the government dole, and are starting to fade away from government attention.
U-5 is made up of those workers who are “loosely or marginally attached”, in government-speak, and is made up of workers who would like to work but have quit looking because they feel that it isn’t worth the effort.
Lastly, U-6 combines the previous five categories plus people who are only working part time. This is the real unemployment rate, not the rate posted by the government. In truth, U-6 is generally twice as high as U-3. Since U-3 numbers are based on non-employed folks on the public dole, it is easy to count the number of checks sent out each month, but half the idle working population don’t get anything.
Taking this one step further the newly unemployed, U-3, who apply for unemployment benefits is another interesting government figure, especially when one understands why it is used instead of the all inclusive U-6. The government says, “Wow. Things are really getting better because new unemployment claims are down last month.” Look at it another way and it doesn’t look as great.
Say you have a hundred workers and you lose 10% a month, and those go on unemployment welfare. First month, new claims are 10 people. Second month, from 90 workers, the 10% loss equals 9 people. Third month loss is 8 people, and month four is only 7 people. The way the government figures it, things are getting better. As the figures show, claims for unemployment have been less for three consecutive months, a very encouraging situation. Not as many people have been laid off so we’re out of the woods. To make matters even better at the end of a year, according to governmental logic, the unemployment problem has been lessened as there were only three people who qualified for inclusion in the U-3 category. A victory for government planners who proudly state that applications for unemployment benefits have decreased by 60% in only a year. What they fail to mention is that instead of 100 workers in your business, there are now 28.
Granted, this illustration is on the exaggerated side but the principle is correct. The government doesn’t want the true figures out.
In truth, the official unemployment rate in the United States is not 8.5%, it is really 15.2%.
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