3rd
Is Unemployment really 10%?
Currently in the US unemployment is listed as being 9.7%, which is a pretty scary number. However as I continue to travel around the US for business and pleasure as well as my experiences in my hometown of LA I have to question is that number really correct.*
Here are a few thoughts on figuring out the “real” number and impact of it for unemployment.
1. How many are working on the side doing consulting projects, etc., while collecting unemployment? I know a lot of people that are doing this and their net income is very close to what their previous income was when they were employed.
2. How many are trying to start a business while out of the job market. Again I know a lot of people that were fired and are working on interesting projects for themselves.
3. I experience a lot of businesses that are staffed by incapable people that have no passion for what they are doing. Why are these companies not changing out these less then motivated employees for more excited and eager unemployed people looking for jobs. This is the one I find most perplexing.
4. Another strange thing is the amount of foreign workers, both illegal and legal in various jobs. Again at a 10% unemployment rate you would assume that those jobs would move into the hands of Americans.**
So based on the above I question whether you can use the unemployment number of 9.7% for today and compare it to an unemployment number of 20-50 years ago as the press continues to do without making any adjustments.
*if you are out of a job and are having trouble finding another one I am very sorry and do not want this post to appear as if I am in any way questioning that struggle.
** I am all for immigration, foreign workers and opening up H1B’s. In fact I think it is one of the dumber things we did after 9/11 was closing the borders to foreign workers. It is just an observation that since foreign workers come at a higher price, you would think that at 10% unemployment it would naturally stop.
