Commonground
Senior Moderator
By MATTHEW SCOTT
Posted 11:00 AM 03/07/10
With the unemployment rate holding steady at 9.7% in February, after dropping from 10% in January, confidence is growing that the job market is finally turning around. But as with all statistics, the unemployment data are complex and a single number rarely tells the whole story. While the unemployment rate is below its peak, other employment trends tell a less optimistic story. In particular, underemployment appears to be a growing problem, and one that may get worse before it gets better.
Underemployment can be measured in different ways. The Department of Labor issues official underemployment numbers (also known as the U-6 statistic), but the number is fairly soft and it's hard to know exactly how many people are truly underemployed. Officially, underemployed workers include those who are unemployed and looking for work, those who are settling for part-time work but want full-time work, and those who are not actively looking for work, although they want to and are available to work. In the March unemployment report, the U-6 number rose to 16.8%, up from 16.5% the month before. In a recent survey, Gallop estimated the underemployed population to be 19.9% of the workforce.
One reason the underemployment number is so high is that after suffering through unemployment for half a year or more, many workers are accepting temporary jobs that move them from unemployed into the underemployed category. Additionally, better temporary job opportunities may be emerging as the economy continues to recover. This is why, in the short run, it is possible for underemployment to increase while the unemployment rate declines.
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http://www.dailyfinance.com/story/u...ng-problem-even-as-job-market-turns/19365801/
Posted 11:00 AM 03/07/10
With the unemployment rate holding steady at 9.7% in February, after dropping from 10% in January, confidence is growing that the job market is finally turning around. But as with all statistics, the unemployment data are complex and a single number rarely tells the whole story. While the unemployment rate is below its peak, other employment trends tell a less optimistic story. In particular, underemployment appears to be a growing problem, and one that may get worse before it gets better.
Underemployment can be measured in different ways. The Department of Labor issues official underemployment numbers (also known as the U-6 statistic), but the number is fairly soft and it's hard to know exactly how many people are truly underemployed. Officially, underemployed workers include those who are unemployed and looking for work, those who are settling for part-time work but want full-time work, and those who are not actively looking for work, although they want to and are available to work. In the March unemployment report, the U-6 number rose to 16.8%, up from 16.5% the month before. In a recent survey, Gallop estimated the underemployed population to be 19.9% of the workforce.
One reason the underemployment number is so high is that after suffering through unemployment for half a year or more, many workers are accepting temporary jobs that move them from unemployed into the underemployed category. Additionally, better temporary job opportunities may be emerging as the economy continues to recover. This is why, in the short run, it is possible for underemployment to increase while the unemployment rate declines.
-snip-
http://www.dailyfinance.com/story/u...ng-problem-even-as-job-market-turns/19365801/