The Federal Reserve came out and stated that we as a country are heading in the right direction! The Federal Reserve is tasked with two working orders. Those orders are to evaluate the Rate of Inflation and the Unemployment or Job Market. The Fed Reserve looks at these tasked events and metrics to evaluate the Prime Rate.
What most do not know is that there is a Bureau of Labor Statistics (BLS) who “whips” together a report every quarter and it spits out an unemployment number or percentage. October 4, 2024, they released their report and it states the U.S. Unemployment is 4.1%. The Fed Reserve has come out and said that is a great number. The numbers they used to generate this rate just do not coincide. The U.S. Population is 336 million people. If you removed 3/4 of the population for recognizing children, elderly, and the disabled it brings a “able to work” population to 84 million. The Bureau of Labor Statistics says that there are only 269,080 active non-institutional population of which 168,699 is part of the civilian labor! Fyi- These numbers are in thousands) to be fair.
The TRUE rate of unemployment is actually closer to 24.4% according to economist’s and institutions such as Ludwig Institute of economical prosperity, which is even reflected in the BLS, but is construed. BLS states the Employed labor population rate is 62.7% which inherently means 37.3% of the labor population is actually unemployed! That is some scary numbers.
So the question that should be asked is Why does the Fed Reserve think that this is great news and that we are heading in the right direction? Im sure any business owner would not think that only having 4% of their employees actually working in a fantastic forecast?
Make sure you are doing your own research and that you understand where we are as a Country. Since 1995, the lowest unemployment rate was December of 2019 at 3.5%, but since 2016 it had tracked downwards on a progressive scale from 5.2% to 3.5%. November 2010 was 9% by the BLS and even since March 2023 has risen gradually to todays marketed rate!