In addition to my previous post one also has to consider the participation rate when looking at unemployment. This measures the percentage of the able population in the workforce. This past month that percentage was 58.7%. During this past year that participation rate has not been that low since 1983. As an example the participation rate in 2007 was around 63%. In 1998, 99', and 2000 it was around 64% to 64.5%- some of the highest recorded. In the past few decades it has averaged around 61 to 63%.
When Obama came to office it was around 60.6%. So since then the participation rate has steadily gone down. So in other words the pool of workers has been lessening. If that rate was what it was historically around even 61% or 62% we would have unemployment rates in the mid teens of percentage and the U-6 number would almost assuredly be above 20%.
The percentage of the population participating in work is simply less and has been decreasing the past few years. Those dropping out are not being counted anymore.
