Real Unemployment Rate Now Near 14%

As I’ve previously discussed, the government’s official unemployment rate doesn’t take into account all unemployed workers in the US, since it leaves out workers discouraged by the poor job market. The US government’s best measure of unemployment, U-5, now stands at 11%, which means that 1 in 9 Americans are now unemployed.

Prior to 1994, the BLS also counted at half value those workers who were working part time only because they couldn’t find full time employment. The Wall Street Journal explores this issue, and estimates current unemployment at 13.3% using the pre-1994 measurement method. Using this broader measure, 1 in 7 Americans can no longer find enough work.