Michael Lombardi: What happened? The Bureau of Labor Statistics (BLS) reported this morning that only 74,000 jobs were added to the U.S. economy in December. Most economists were expecting 200,000 jobs to be created in December—way off reality. The December increase in U.S. payrolls was the slowest pace in almost three years.
But it gets worse…
The underemployment rate, which I consider the “real” measure of the jobs market in the U.S. economy, was unchanged in December at 13.1%. The underemployment rate includes those people who have given up looking for work and those people who have part-time jobs but want full-time jobs.
The table below shows the official unemployment rate versus the underemployment rate for 2013.
U.S. Official Unemployment Rate vs. Underemployment Rate, January-December 2013
|Month||Revised Official Unemployment Rate (U3)||Underemployment Rate (U6)|
|% Change Jan.-Dec.||-15.19%||-9.03%|
Data source: Federal Reserve Bank of St. Louis web site, last accessed January 10, 2014.
What the above chart shows is that despite what we heard about the U.S. economy improving in 2013 and despite the Federal Reserve creating over $1.0 trillion in new money in 2013 to help the economy, the “real” unemployment rate declined by less than 10% in 2013, from 14.4% at the beginning of the year to 13.1% by the end of the year.(...)Click here to continue reading the original ETFDailyNews.com article: Why I’m Very Suspicious Of This Economic RecoveryYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
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