Real Unemployment

[orwell]

Interesting chart from jobwatch on the true unemployment picture:

http://www.jobwatch.org/

"Unemployment measures understate job slack
The number of unemployed workers (currently 8.2 million) and the national unemployment rate of 5.6% in February 2004 do not adequately convey the true labor slack in the economy for several reasons. One major understatement is that the unemployment rate does not reflect the uniquely large 1.2% decline in labor force participation that has occurred since the current recession began in early 2001. This decline represents a stark contrast to the past three business cycles, when labor force participation actually grew by an average of 0.4% of the working-age population over similar lengths of time. Consequently, there is what can be called a "missing labor force" of 2,808,000 workers who might otherwise be in the actual labor force but have either dropped out entirely or failed to enter the labor market because of the lack of jobs. If the unemployment rate in February 2004 took into account this missing labor force, the unemployment rate would have been 7.4%, or 1.8% greater than the official rate of 5.6%."

O

[Nederland]

1. Question

Has anyone calculated what real unemployment rate was during the Clinton years?

[rogerashton]

2. Or the Reagan years?

I'm betting double digits bigtime in 82.