The True Rate of Unemployment: Revealing the Flaws in Official Figures
In a recent state of the union address, presidential candidate Robert R. Kennedy, Jr. made a bold claim that sent shockwaves through the nation. According to Kennedy, if discouraged workers were included in current unemployment metrics, America’s unemployment rate would skyrocket to a staggering 23 percent. This revelation, backed by the Ludwig Institute for Shared Economic Prosperity, sheds light on the true health of the American economy and calls into question the accuracy and relevance of official unemployment figures.
What exactly constitutes a discouraged worker? These individuals are capable of working and meet all the criteria for employment, but have not made efforts to seek employment in the past four weeks. In essence, they have given up on finding a job in the current economic climate. When these individuals are taken into account, along with those who lack full-time employment or desire additional hours, the True Rate of Unemployment (TRU) stands at a shocking 23.6 percent.
To put this into perspective, the official U.S. unemployment rate as of March 2024 is listed at 3.9 percent. This means that the TRU is nearly six times higher than the reported figure, encompassing almost a quarter of the American workforce. These numbers reveal serious systemic problems within the American workforce that cannot be ignored.
Delving deeper into the data, it becomes clear that certain demographics are disproportionately affected by this unemployment crisis. Those without a high school diploma face an alarming unemployment rate of 79 percent, while those with only a high school diploma are not far behind at 57 percent. Even individuals with bachelor’s or advanced degrees are not immune, with rates of 37 percent and 35 percent respectively. The racial disparities are equally concerning, with unemployment rates of 50 percent for blacks, 52 percent for Hispanics, and 52 percent for whites.
The geographic distribution of the TRU further emphasizes the severity of the situation. In metropolitan areas such as Augusta, Georgia, and Las Vegas, Nevada, the rate exceeds 30 percent. In Colorado Springs, Colorado, it reaches a staggering 50 percent, while in Springfield, Massachusetts, and Greensboro-High Point, North Carolina, it soars to an alarming 60 percent. These statistics highlight the regional variations in unemployment and the urgent need for targeted solutions.
The glaring issue lies in the metrics used to calculate U.S. unemployment, which are not only inaccurate but also manipulated. An unemployment rate of 5 percent does not mean that the remaining 95 percent of the population is gainfully employed. Those who have given up on seeking employment are not even acknowledged as unemployed, and part-time workers are classified as employed. This manipulation of data obscures the true state of the economy and undermines public trust.
To compound matters, many newly hired government workers are included in the reported employment figures. The federal government does this deliberately to boost the numbers, even if these workers are only employed part-time and work minimal hours each week. This practice not only skews the data but also raises ethical questions about the government’s role in manipulating employment statistics.
A recent session at the National Conference of State Legislatures shed further light on the disconnect between reality and reported figures. The U.S. Chamber of Commerce revealed that there are 9.8 million job openings but only around 5.9 million job seekers to fill them. Meanwhile, the national labor force participation rate has declined significantly from 66.8 percent to 61.7 percent between 2001 and 2021. These revelations expose the vast disparity between the truth and what is being presented to the public.
Relying on a flawed metric to gauge economic well-being is deceptive at best. The use of manipulated unemployment numbers as a political tool undermines public confidence and distorts the true health of the economy. It is time for a reassessment of how we measure unemployment, taking into account the realities faced by millions of Americans who are struggling to find meaningful employment.
As we navigate through a highly contentious election year, it is crucial that we demand transparency and accuracy in economic reporting. The True Rate of Unemployment reveals the stark realities of the American workforce and calls for urgent action to address the systemic issues that have led us to this point. It is time to move beyond propaganda and embrace an honest and comprehensive assessment of our nation’s economic well-being.
