What is the unemployment rate in USA, the largest economy in the world….

Posted by Associated Press -ChartoftheDay.com

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Ed. Note: In an article cheering an Umemployment Dip to 9.4%, the Associated Press buries in the bottom of the article was this gem:

Associated Press: “One of the reasons the rate declined, though, was that hundreds of thousands of people left the labor force.  The labor force includes only those who are either employed or are looking for work.”

So what is the Unemployment rate in the Worlds largest economy?  9.4% is U3 and that’s people who are employed, looking for work, not employed, on unemployment benefits. U6 is everybody that’s looking for work, on unemployment compensation and those who are no longer looking. In other words, they’ve given up, and that rate is over 16%.  Not 9.4.

Depends on how you count I guess.

From Chart of the Day:

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The Labor Department reported that the unemployment rate actually decreased from 9.5% to 9.4% during July. This is the first decrease in the unemployment rate since April 2008. For some perspective on the current state of the labor market, today’s chart illustrates the unemployment rate since 1948. Today’s chart illustrates that despite this month’s encouraging decline, there was only one general period in the post-World War II era during which the unemployment rate was higher than the current rate of 9.4% (i.e. June 1982 – June 1983). It is worth noting, however, that a one-month decline in the unemployment rate (even a small decline) after a significant spike (i.e. the unemployment rate spikes by 1.5 percentage points or more) has tended to occur slightly after a recession had ended.