Despite the recent unemployment statistics, the Bureau of Labor Statistics (BLS) shows that the U.S. economy had added 288,000 jobs in April and brought down unemployment to 6.3 percent, but according to an analysis by CNS News, the numbers do not tell the whole story.
CNS News said on Friday that a record number of Americans who were not in the labor force in April was 92,594,000 and that the labor force participation rate had matched a 36-year low of 62.8 percent.
Interestingly enough, CNS said that the way the unemployment rate is calculated, the rate can actually go down even when the number of people who are employed is also going down and really does not show the whole story of actual numbers plus the number of Americans who have given up looking for a job.
The employment rate for youth is even worse.
USAToday reported the youth unemployment situation on Sunday that the high unemployment for youths is serious with severe a consequence that’s being overlooked and that youth unemployment is contributing to billions of dollars of lost taxes for both federal and state governments.
Some of the figures pointed out by USAToday is that the unemployment rates for 18 to 29 year olds is 15.8%, which is more than double the general rate and the unemployment rate for 18 to 29 year old African-Americans is 23.8% while for Hispanics, it’s 16.6%.
USAToday obtained the lost taxes figures from a recent report entitled, “In This Together: The Hidden Cost of Young Adult Unemployment”.
The report found that the worst 10 states for total state tax losses due to youth unemployment, all of which are estimated to lose $50 million or more annually and that unsurprisingly, California tops the list because it has the largest youth population in the country. New York, Illinois, and Pennsylvania also boast large populations. However, significantly less populous states such as North Carolina, Georgia, New Jersey, Alabama, and Kentucky round out the top 10.
Nevertheless, CNS said, “In April, the seasonally adjusted unemployment rate dropped at the same time the number of people with jobs dropped. In the BLS's non-seasonally adjusted data, the number of people employed increased by 677,000 from March to April, climbing from 145,090,000 to 145,767,000.”