Eagle Forum Legislative Alerts

Wednesday, November 27, 2013

Obama's Hidden UNemployment Problem

Liberals in the Mainstream Media are constantly trying to tell us that our economy is getting better. The media gave a lot of coverage to the fact that the official UNemployment rate fell by one-tenth of one percentage point in August. But the so-called official Unemployment rate does not tell the whole story. It only counts people who are actively looking for a job. We can get a better grasp of the true UNemployment level if we look at the labor force participation rate. That's the proportion of adults who are either working OR looking for work. The labor-force participation rate for August this year was the lowest in 35 years. It was 63 percent. Even participation in the 25-to-54 age group has steadily declined under Obama, and that drop cannot be explained away by baby-boomer retirements or larger numbers of students. Except in rare cases, 25-to-54-year-olds are finished with school and are not yet ready to retire. The statistics tell us that many people we'd expect to be working a real job are not seeking employment because they are so discouraged.

Another hidden problem with our economy is the large number of part-time workers who really want full-time employment but are not able to find it. This is the result of government regulations that act as incentives to employers to reduce their labor force. Many companies cut employees' hours to below 30 hours per week in order to avoid ObamaCare requirements. If we count those who are forced into part-time work, the UNemployment rate would be much, much higher. Economist John Williams says that, after the unseen out-of-work Americans and part-timers are counted, the true Unemployment rate in the United States is above 23%, and Obama must be held accountable for this tremendous lack of jobs. Much of this is due to Obama's regulations that act as incentives to employers to reduce the count of their labor force.

Listen to the radio commentary here:

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