However, the actual unemployment rate fell below 10% to 9.7%. This will most likely be touted as progress from our leaders but an understanding of the numbers shows otherwise.
The reason for the total percentage drop is not an improvement in unemployment, but an enormous part of the workforce entering the discouraged category. This means they have been unemployed for so long that they have fallen off the unemployment claims list. The government counts these people as have given up looking for work and therefore are not counted as part of the labor force.
The next chart shows where we stand compared to previous recessions with that percent job loss and the amount of time it took to recover:
And finally the U6 government unemployment number which shows the real unemployment rate including the “discouraged.” It has just hit a new high at 18%:
The continued job losses and unemployment rate will only add to what is in store for home owners.....