Unemployment rate 'a less rosy picture' says Federal Reserve Chair Yellen today

February 24, 2015

 

First the CEO of the Gallup polling organization stepped forward to say the national 5.7% unemployment rate was a farce...and now the Chair of the Federal Reserve, Janet Yellen, is echoing those statements.

 

Yellen said at a Senate Banking Committee hearing today (2/24/15) that the highly publicized 5.7% rate (known as the U-3 rate) doesn't give a clear picture of what is happening in real households in America. THAT rate only counts as 'unemployed' people who actively sought a job in the past four weeks but were unsuccessful.

 

Yellen said the seldom mentioned U-6 unemployment rate (which includes people who are working part-time for economic reasons and those who are marginally attached to the labor force) is a staggering 11.3%...and is a more accurate representation of the economic climate.  “The U-6 is a broader measure of unemployment, and it includes marginally attached and discouraged workers and also an unusually large number of individuals who are working part-time who would like full-time jobs, so it is a much broader indicator of underemployment or unemployment in the U.S. economy,” Yellen said, " It definitely shows a less rosy picture..."

 

Both of those rates, incidentally, also ignore those who have previously tried to find a job, but eventually gave up. That 'ghost group' literally numbers in the millions and is nowhere to be found on the 'unemployment rate' radar. 

 

If the current economic climate has you in a difficult financial situation, sometimes bankruptcy is an option to consider. Contact us for a free consultation. 

 

We have three law offices to serve you in several areas of practice, including: wrongful death & personal injury, motor vehicle accidents, workers comp, debt resolution & bankruptcy, and social security & disability:

Law office of T. Verner Smith
Personal Injury - Bankruptcy - Disability
112 N. Liberty  Jackson TN
(731) 423-1888

Law office of T. Verner Smith
Personal Injury - Bankruptcy - Disability
5100 Poplar, Clark Tower, Suite 2700  Memphis, TN 38137
(901) 730-4567

Law office of T. Verner Smith
Personal Injury - Bankruptcy - Disability
750 Old Hickory Blvd, Suite 150   Brentwood, TN 37027
(615) 371-6136

 

 

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