Details of Unemployment Rate Decrease Show Less Reason to Celebrate


While Friday's announcement of an improvement in unemployment rates was positive, there seems to be some hidden details showing that we have less to celebrate. 

The seasonally adjusted unemployment number is 7.6 percent for June. But the number of "involuntary part-time workers" increased by 322,000, to a total of 8.2 million.

"These individuals were working part time because their hours had been cut back or because they were unable to find a full-time job," a press release from the Bureau of Labor Statistics said. 

An estimate from Goldman Sachs adjusted the government's data for the demographic shifts, making the actual unemployment rate 9.1 percent.

The worst age group for unemployment, 18-29, has a rate of 16.1 percent according to advocacy group Generation Opportunity. The Labor Department estimated that the unemployment rate for these young people was 12.7, but that figure was not seasonally adjusted.

"The White House will undoubtedly try to spin this morning's jobs report as evidence that their policies of higher taxes and unsustainable deficits are actually creating more opportunities," group president Evan Feinberg said. 

"Young people are finding fewer opportunities."

The statistics are worse for minority groups. African Americans ages 18-29 face an unemployment rate of 23.7 percent, while Latinos have a rate of 13.2 percent. Young women have an unemployment rate of 11.6 percent.

Many Republicans are blaming Obamacare for the rise in part-time jobs, as it is scheduled to affect taxpayers in 2014 and businesses in 2015.

"Obamacare has been predicted to be a drain on employment since before its passage," House Majority Leader Eric Cantor said. "And that outcome was confirmed by the Obama Administration's delay of the employer mandate."

"Delaying the inevitable for one  year will bring no solace. We must have a permanent delay of Obamacare before we can realize our full job creating potential."

Sources: Daily Mail, Zero Hedge


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