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US unemployment rate reaches 22.8%
May. 8th, 2020 03:01 pmIt must be so because I read it on CNN. The "U6" rate is the one that was previously called "the unemployment rate". It is the one that is comparable to the "25% unemployment" figure that is usually quoted for the nadir of the 1930's Great Depression. We are only two percentage-points shy of that — and next month's figure is expected to be worse.
The "U3" rate is only 14.7%. This number was constructed to be smaller than the U6 number, so that people wouldn't complain to politicians so much. It is not comparable to previous depressions.
In either case, the "labor force participation rate" has dropped to 60.2%, which is not as bad as the 58.1% figure for December 1954, but is otherwise awful. Only 6 Americans out of every 10 have jobs.
Here is a summary of what the USA intends to do about this: "fear of catching the virus would be considered a voluntary resignation, which disqualifies workers from receiving unemployment benefits." If the serfs do not go back to work then we shall starve them back to work! This is not a new idea in America, that wage-slaves will only work if they're hungry so you mustn't feed them too much. If you treated your dog that way, you'd be arrested for animal cruelty.
It is unclear what the corresponding situation is in Canada, because the government has decided to respond to the emergency by changing their rules on how to calculate unemployment. But they claim that their U3-equivalent rate is only 13.0%, or "really" 17.8% if you include the effects of COVID-19. According to this page the labour force participation rate for Ontario is 63%. Go us!
The "U3" rate is only 14.7%. This number was constructed to be smaller than the U6 number, so that people wouldn't complain to politicians so much. It is not comparable to previous depressions.
In either case, the "labor force participation rate" has dropped to 60.2%, which is not as bad as the 58.1% figure for December 1954, but is otherwise awful. Only 6 Americans out of every 10 have jobs.
Here is a summary of what the USA intends to do about this: "fear of catching the virus would be considered a voluntary resignation, which disqualifies workers from receiving unemployment benefits." If the serfs do not go back to work then we shall starve them back to work! This is not a new idea in America, that wage-slaves will only work if they're hungry so you mustn't feed them too much. If you treated your dog that way, you'd be arrested for animal cruelty.
It is unclear what the corresponding situation is in Canada, because the government has decided to respond to the emergency by changing their rules on how to calculate unemployment. But they claim that their U3-equivalent rate is only 13.0%, or "really" 17.8% if you include the effects of COVID-19. According to this page the labour force participation rate for Ontario is 63%. Go us!
