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Clifton does not argue that the measurement is not available. I think he is arguing that U3 is not the most useful figure for Americans to hear the most about,
by apeace 12y ago
Clifton does not argue that the measurement is not available. I think he is arguing that U3 is not the most useful figure for Americans to hear the most about, from supposedly trustworthy sources.
> Here's something that many Americans -- including some of the smartest and most educated among us -- don't know: The official unemployment rate, as reported by the U.S. Department of Labor, is extremely misleading.
U3 is not referred to as the "headline rate", it's called "official unemployment". While it's unfortunate that most Americans would not inform their voting--or other decisions--by researching the alternate measurements of unemployment, it is indeed the reality.
One would like to assume that when the president or a news organization cite an "official unemployment rate", they are offering us the best information about what might concern the average citizen. The number of people who have totally given up on finding a job is definitely one such piece of information. This, I think, is Clifton's main point.
Anecdotally, I've been pleasantly surprised at the amount of coverage alternate measurements get in the media. I've seen several segments that highlight this. It seems to me that the meaning of the "official" definition is becoming more commonly known. I think Clifton would disagree with me here.
Although, you might try explaining about U6 to a group of people who don't know about it. In several instances, I've been labeled a conspiracy theorist for doing so! Luckily, as you point out, the government does actually provide this information. I'm glad some are spreading the word!
- djur 12y agoThe absolute value of unemployment isn't particularly important. It's never going to be 0%, so you end up having to establish some n where n% is "full employment". In the US that's around 5% for U3. We were around 5% before the financial crisis and are approaching it again now. That's a meaningful change. U6 is only politically relevant versus U3 if the two have diverged over time. As you might expect, the two increase and decrease in near lockstep [1]. The U6-U3 gap widened during the Great Recession but is narrowing now. It's about a point higher than it was the last time U3 was at current levels. This is significant, but it doesn't make the trend or relative value of the U3 rate less meaningful. [1]: http://goo.gl/iEBEq0 http://goo.gl/iEBEq0