So sayeth James Pethokoukis, and his argument is convincing. It may look as though unemployment is low, but that is only because those who are not actively searching for work, but would if their prospects were brighter, are not being counted, and underemployment (featuring those who are working part-time jobs, but who want full-time jobs) is not being factored into the picture. According to Pethokoukis, all of this “puts the ‘true’ jobless rate about 1.9 percentage points higher the official rate. So figure around 7½ percent.”
Something to think about when you hear certain politicians and pundits tell us that full employment is just around the corner. And especially something to think about when it comes time to vote next year.