Part 1: The real unemployment rate:
Bottom Line: On Friday, the BLS reported unemployment at 4.8%. As we know that doesn't account for the long term unemployed. So each month I bring your the real unemployment rate.
This first entry is specific to what the real unemployment rate is and how labor participation factors into this important story:
Government reported unemployment rate: 4.8%, up from 4.7% in December & down from 4.9% in January of 2016
Actual: 9.4%, up from 9.2% in December and down from 9.9% in January of 2016
So here are three relevant points:
1. When the long-term unemployed & marginally employed are factored in the real unemployment rate remains nearly double the base reported rate
2. Year over year slight, but not significant, progress was made with the real unemployment rate dropping by a half of one percent
3. 7.6 million are still unemployed. 1.9 million are long-term unemployed, 5.8 million are underemployed (part-time seeking full-time work) & 1.8 million are marginally attached to the workforce
In part two we'll explore the demographics of the unemployed...