Saturday, October 20, 2012


Officially, the unemployment rate in America for the month of September was only 7.8 per cent, but that statistic stems from only the number of citizens who have been actively searching for a paycheck. In reality, only around 5 per cent of the adult population in the US is unemployed in the eyes of the government, because they have been handing in applications during the four weeks before the Labor Department conducted their research. Additionally, another 3 per cent are interested in work, but haven’t actively engaged in a job hunting during that span, creating an unemployment figure of just under 8 per cent.
The real figures, however, reveal a much scarier statistic.
"The employment-to-population ratio is the best measure of labor market conditions and it currently shows that there has been almost no improvement whatsoever over the past three years," Paul Ashworth, chief North American economist for Capital Economics, writes in a note to clients obtained by CNN. That figure, which accounts for the proportion of working Americans compared with the number of adults in the country, is a lot higher than 8 per cent.
For now, 58.7 per cent of American adults are working if the actual employment-population ratio is taken into consideration, leaving about 82 million, or almost 41 per cent of people unemployed. Only 8 per cent, however, are even interested in work, leaving 33 per cent of Americans not only jobless — but with no desire for work.
"The ratio expresses more clearly how many people find working to be a 'good or attractive deal,'" Tyler Cowen, economist and director of the Mercatus Center at George Mason University, adds to CNN.
If the numbers seem drastic, it’s because they are. So rampant in fact is the country’s seeming disregard for work that other just-released statistics show that funding welfare programs for the American population was the most expensive endeavor undertaken in all of Fiscal Year 2011.

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