Well, duh. Thanks, Janet.
Via CNS News:
(CNSNews.com) – Federal Reserve Chair Janet Yellen said Tuesday at a Senate Banking Committee hearing that the U-6 unemployment rate–which includes people who are working part-time for economic reasons and those who are marginally attached to the labor force–“definitely shows a less rosy picture” of employment in the country.
People “marginally attached” to the labor force “are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for one work sometime in the past 12 months.”
In January, according to the Bureau of Labor Statistics, the “U-3” unemployment rate, which is the one generally reported, was 5.7 percent. U-6 was 11.3 percent.
The “U-3” rate counts as “unemployed” only people who actively sought a job in the past four weeks but did not find one.
Chairman Richard Shelby (R-Ala.) asked Yellen, “Do you agree that the unemployment number that you cited, 5.7 percent, in your opening statement paints a rosy or better picture of the true unemployment rate?”