Why Underemployment May Be Worse Than It Looks

By Ray Pinard | July 30, 2013

An interesting article by Jeff Cox published on the Friends of the US Chamber of Commerce web site

The level of underemployed workers looks bad on its face but even worse when it’s not the government doing the counting.

When the Labor Department released its monthly non-farm jobs report Friday, it was all sunshine and roses except for one glaring weakness: A big jump in the unemployment rate that includes those who have quit working as well as those who have had to take part-time jobs even though they’d rather work full time.

That rate, which economists call the U-6, jumped from 13.8% in May to 14.3% in June—a 3.6% increase and indicative that the 195,000 new jobs created in the month weren’t exactly of the highest caliber.

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