The Bureau of Labor Statistics (BLS), released yesterday that unemployment has dropped to 7.8%. Now, that percentage doesn’t mean anything unless you compare it to another percentage or numbers. Let’s compare it to the numbers. 23 Million people were out of work during the RNC convention as well as the DNC convention and assumingly, still, to this day. Other sources such as the AP claim that a rough 12 Million are unemployed. That number is not the reality of the situation.
For the BLS to claim that unemployment dropped 7.8% is the same as stating that 460,000 have entered the workforce. In one month’s time in such an unstable, slow growing economy, that number is not likely. Facts show that for the past 40 months, unemployment has always been above 8%. But is that the real number percentage? The answer is no, and here’s why.
There are ways that number is skewed. To include some:
- Many states have revised their Unemployment Insurance coverage 6-22 less weeks than their standard amount of covered weeks, usually 99. The idea behind reducing the amount of people receiving governmental assistance via checks was to stimulate growth.
- Some have quit looking for work entirely.
- 50% of College Graduates who have worked hard to earn their degree and obtained mass student loan debts are obligated to pay those debts within 6 months of the graduation date cannot find work. They are living with their parents or relatives. Their education is simply not enough. They cannot file for unemployment.
- Does not include farmers.
Florida was a 99 week state; however, it is now a 26 week state plus the federal extension amount. Florida is one state that took a hard hit, for sure. In August, the UI program had tightened their eligibility requirements by forcing those applying to strictly apply online and to complete a 45-minute test which assessed their job skills. This is unfair to those who have limited computer access, poor English speaking/reading skills, poor computer skills or even a physical disability in which no way is a fault of their own. Since then, denial for unemployment insurance has sky rocketed, rejecting almost half of those who apply. On a national standard, 30% is the standard “denial rate”.
This change saved Florida $2.7 million and ultimately declined the unemployment rate. Imagine this change taking affect in all 50 states. You can see clearly how unemployment would decrease dramatically in months to come.