Underemployment: The New Unemployment
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Recently released figures from the Bureau of Labor Statistics indicate that the unemployment rate in America inched up one-tenth of one percent in February 2014 to 6.7 percent. While that figure is the most discussed by talking heads and pundits alike, it doesn’t paint the full picture on the employment situation in the country.



The BLS’s calculations on unemployment don’t stop there. In fact, the bureau calculates six different figures pertaining to unemployment, one of which includes those who have stopped looking for work, those who haven’t looked for work recently, the underemployed and those included in the aforementioned unemployment calculation. The most recent calculation for this statistic, referred to as U6, is 13.1 percent as of February 2014.





Doing some basic arithmetic—subtracting U5 (8.4 percent in February 2014) from U6—we can conclude that the underemployment rate in the United States—that is, those who are working part-time and wish to have full-time jobs—stands at 4.7 percent.



Making Ends Meet



These figures taken into consideration, the argument could be made that the real unemployment rate in the United States is nearly double the figure that gets reported. Or phrased another way: Underemployment is a very serious problem facing the country.



Imagine you are an HVAC repair technician. The company that you’ve given your blood and sweat to for the last seven years has just folded and you’re left without a job. But you’ve got a wife and kids to support, so while the unemployment safety net helps temporarily prop you up, you’re actively looking for a new job.



After a few months on the search, you’ve had no luck finding a full-time position that pays anywhere close to a comparable wage. You didn’t imagine making as much as you made at your last gig; you just wanted something comparable.



Eventually, to make ends meet and put food on the table, you end up taking a similar job that only gets you 25 hours of work per week, but the life you lived just a few months ago seems wholly out of reach.



You Are Not Alone



If you were to find yourself in a scenario similar to that described above, it’s important to remember you are not alone.



Recent estimates indicate that there are about 155,725,000 people in the United States labor force. With that figure in mind, some more simple math tells us that in addition to the 10.4 million out-of-work people included in the nationally reported unemployment statistic, there are 7.32 million Americans who are employed part-time and seeking full-time employment but are having a hard time locking down any such job. And those numbers don’t even include those men and women who have stopped looking for work altogether.



No matter what the media tells us, there’s no way around it: We’re living in a difficult economic climate. Prices of virtually everything appear to be increasing while wages—for those lucky enough to be employed full-time—seem to remain relatively stable across most industries.



Still, it’s important to not lose hope. Many economic juggernauts have reported that they believe the economy is picking up. Sure, there will always be naysayers. But remember: There’s nothing to lose by remaining optimistic.