Are You Officially Unemployed? The Truth Behind The Numbers

Understanding the unemployment rate

 

The official unemployment numbers for the month of June have been released and the picture isn't looking too good. Of course, if you have been out of work or have been looking for a job, then you already know this.

 

As of now, there are over 14 million people officially unemployed, which means that the unemployment rate is hovering at around 9.2 percent. Which is really high, but not quite as high as it was during the last half of 2010.

 

But, my question was, what does "officially unemployed" mean?

 

So, I set out to find the answer so that I could explain it to you. What I found was even more confusing. It seems that the unemployment rate is based on the amount of people who fit into the very narrow definition of "officially unemployed".

 

In order to be "officially unemployed", you have to meet all of these criteria:

 

 

Not everyone who is technically unemployed is "officially unemployed". If you have lost your job but found a little bit of work at a fast food restaurant or waiting tables just to get by, you aren't unemployed according to the Bureau of Labor and statistics. If you lost your job at a factory and can't find anyone who is hiring, you probably aren't unemployed enough to count either.

 

Like I said, it's very confusing. In an effort to help, the wonderful money managers at Mint.com have put together an excellent quiz to find out if you are officially unemployed.

 

Free budget software – Mint.com

 

Free budget software – Mint.com

 

So, as you can see, the official unemployment rate looks a whole lot better than the real world conditions. Since this infographic was created when the rate was a little bit higher, their numbers aren't accurate. Right now, the U-6 number for the month of June is 16.2%. Which is a whole point lower than last year, but still really high.

 

Hopefully the increase is just a bump in the road to recovery and experts are predicting things to get better as we enter the fall.

 

 

What do you think about this information? Are you officially unemployed? Share your thoughts in the comments.

 

 

 

By Melissa Kennedy- Melissa is a 9 year blog veteran and a freelance writer for SalesHeadsBlog, along with helping others find the job of their dreams, she enjoys computer geekery, raising a teenager, supporting her local library, writing about herself in the third person and working on her next novel.