Wednesday, September 6, 2017

Unemployment rate

Being mathematically incorrect but practically correct, 5% is full employment. The 5% are folks who collect welfare, some able and some deserved. In some countries where if you do not work, you do not eat, their 'full' employment is 1%. We also do not count those who give up.

Welfare is supposed to be a temporary safety net to most. Many times we have counted folks taking two or more jobs more than one time.

Are we better this time? No, it is due to our lower average salary compared to 2007, not to mention 2000, which could be the peak. Also we have to factor in inflation (about 3% average annually).

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