The April 4 release from the Bureau of Labor Statistics has six parameters that determine “underutilization” in the labor market. Parameter U1 represents workers who have been unemployed 15 weeks or longer currently at 3.7 percent from 4.3 in March 2013, parameter U2 includes job losers and those who finished a temporary position showing at 3.7 percent from 4.3 percent in March 2013 and U3 representing the total unemployed determined by rate at 6.8 percent from 7.6 percent in March 2013 not seasonally adjusted.
Currently the unemployment rate appears lower in March for the cities of Glendale and Los Angeles show 7.7 percent from 9.0 percent in March 2013 and 9.8 percent from 11.4 percent in March 2013 respectfully, percentages not seasonally adjusted.
Due consideration of unreported data not included in the unemployment rate is not far from the truth. According to David Wiedemer, Ph.D, Robert A. Wiedemer and Cindy Spitzer, authors of “Aftershock Protect Yourself and Profit in the Next Global Financial Meltdown” (3rd. edition, 2014) state “To be counted in the official ‘unemployment rate’ a person has to be out of work entirely and actively seeking a job. While the typical unemployment rate reported in the media has recently held steady around 7 or 8 percent, it doesn’t tell the whole story. For that, we need to look at what is called the U6 unemployment rate, which conveniently the government and the media avoid discussion too much.”
According to the Bureau of Labor Statistics, parameter U6 currently at 12.8 percent from 13.9 in March 2013 (not seasonally adjusted) includes “total unemployed, plus all persons marginally attached, plus total employed part-time (counted as a percent of the labor force) plus all persons marginally attached to the labor force.”
The Bureau of Labor Statistics defines marginally attached workers “as workers who are neither looking for work and are interested in getting a job and have attempted to find a job within the past 12 months.”
Wiedemer, et al (2014) also state, “The U6 rate, which includes discouraged unemployed and those working part time when they’d rather work full time, is officially 13.2 percent, as of November 2013. When you also add in those who left the workforce, the number is even higher…Nonetheless, it has become an increasingly common phenomenon to see the official unemployment rate figure remain flat or even go down slightly while the number of people dropping out of the work force goes up.”