Clancy: The real unemployment rate
November 4, 2012
It’s a known fact that in any economy the government has always considered an unemployment rate of 4 percent to be full employment and this has nothing to do with what party is in the White House.
The reason is simply because some people don’t need to work, don’t want to work or can’t work and that represents about 4 percent of the population. If we understand this and subtract 4 percent from the current 7.9 percent unemployment rate we have a 3.9 percent unemployment rate.
So are we to believe that the sky is falling with a 3.9 percent unemployment rate which occurred during one of the worse recessions since the great depression? Beware of listening to the “Chicken Littles” in the game of politics who want to convince you that the sky is falling, the end is near and it’s the fault of that guy in the White House.