3 ms·
Those using U3 to promote a positive narrative all know that the general public mistakenly believes "5% unemployment" = "95% of people who want to work full tim
by brandonmenc 12y ago
Those using U3 to promote a positive narrative all know that the general public mistakenly believes "5% unemployment" = "95% of people who want to work full time are working full time."
That's what's misleading.
- djur 12y agoUnder U3, 5% unemployment is considered more or less normal. Sometimes economic booms dip below that (at which point you usually get contractionary policies to prevent inflation). But 5% will be reported as good news. If U6 was the headline number, "normal" would be 8-9%, and that would be reported as good news. I see no reason to believe that the absolute difference between those numbers would have any effect on politics or policy.