Male unemployment: 22% (or even worse)

From Brett Arends, WSJ.com and MarketWatch:

The official jobless rate, at 9.7%, is a fiction and should be treated as such. It doesn’t even count lots of unemployed people. The so-called “underemployment” or U-6 rate is an improvement: For example it counts discouraged job seekers, and those forced to work part-time because they can’t get a full-time job.

That rate right now is 16.6%, just below its recent high and twice the level it was a few years ago

And even that may not tell the full story. Many people have simply dropped out of the labor force statistics.

Consider, for example, the situation among men of prime working age. An analysis of data at the U.S. Labor Department shows that there are 79 million men in America between the ages of 25 and 65. And nearly 18 million of them, or 22%, are out of work completely. (The rate in the 1950s was less than 10%.) And that doesn’t even count those who are working part-time because they can’t get full-time work. Add those to the mix and about one in four men of prime working age lacks a full-time job.

Dean Baker, economist at the Center for Economic and Policy Research in Washington, D.C., says the numbers may be even worse than that. His research suggests a growing number of men, especially in deprived, urban and minority neighborhoods, have vanished from the statistical rolls altogether.

Posted by James on Tuesday, July 06, 2010