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8.1 Unemployment Rate Misleading, Inaccurate-What’s The REAL Story?

Worksource Tri Cities
(courtesy Worksource-Washington Employment Security Department)

The Obama Administration has been crowing about another small drop in the unemployment rate, down to 8.1 percent.  But a look at the REAL data shows that’s not accurate.

Just like most statistics,  politicians can manipulate figures to make things look rosy, and that is what the White House is doing.   According to, a leading investment-stock website,  the number of Americans not part of the workforce has climbed to it’s highest level in HISTORY.   The Labor Force Participation Rate is the number of work-eligible Americans who could have a job, or the total available pool of people.  That number has shrunk to record levels. reports the 8.1 rate is misleading because compared to 2007 (before Obama) there are now an additional 9.2 million unemployed Americans who are either not getting benefits anymore, or have dropped out of the workforce–not part of the “participation rate”.    The government doesn’t count these people.   When you add them to the 8.1 percent, you actually have an unemployment rate of 9.7 percent.

 Then you have to add, say economists, what the government calls the “U-6″ or under-employed people–folks who are part time, or have a job not capable of sustaining them or their family by itself.  Once you add the unemployed and U-6 workers together,  a whopping total of 19 percent of Americans are making no income, or less income that what is needed to survive at a reasonable standard!

  Again, the rosy 8.1 rate,  as well as the three month decline touted by Obama, does not include the underemployed. 

 And finally,  The White House is ignoring that the 115,000 jobs added in April is well below what is considered normal or healthy in any recovery, according to the Wall Street Journal.   They are also reporting  the reason the unemployment rate fell to 8.1 is because over 340,000 people dropped out of the workforce--quit looking for work altogether.

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