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Mar 06, 2009 -- New unemployment stats obscure larger jobless measure

CLARKONOMICS: The official unemployment figure for February now sits at 8.1%; that means roughly 1 in 12 Americans are without work. And it's likely to rise to somewhere between 10% and 12% before this whole recession is through.

But there is a second stat that economists watch even more closely called the U-6. This number measures those who have been laid off from full-time work and may have to work two part-time jobs to make ends meet, plus those who have simply given up looking for work because it seems like the jobs just aren't there.

The U-6 rate is just under 15%. Clark thinks this figure could go to somewhere between 18% and 19% when you extrapolate based on his projections about the official unemployment rate.

Let's face it, unemployment is not a vacation. The days feel like weeks, the weeks like months and the months like years. So often we measure our self-worth by our livelihood. Yet we are so much more than whatever job we do.

Recovery will eventually come, but it probably won't be in 2009. Clark recently spoke about the nearly $4 trillion that people have just sitting on the sidelines in money market funds. When that investor psychology turns and people put their money back in the market, that's going to be another key to us starting to lick this unemployment problem.

Sitting alone behind your computer and sending out resumes is only one approach to finding work. See Clark's list of freelancing websites and his work-at-home guide for more assistance.

And don't underestimate the power of networking face-to-face with contacts!

Unfortunately, Clark won't be able to answer any questions submitted via commenting. If you have a question, please try posting it to our message boards.

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What others are saying

  • My husband is in a similar sitation. He obtained a degree in child development in 2004. After working only very poorly paid jobs, he worked to obtain his teaching certification, which he completed in May 2008. He now only substitutes because there were no job openings for him. Unemployment totally ignores these people who leave school and cannot find work.
  • Recent Graduates
    My husband graduated from law school in 2008 with good grades, and took 2 state bars, successfully passing each on the first try. It's now March 2009, and he still has not secured a full-time job despite valiant efforts. He is ineligible for unemployment because he did not "work" during the previous two years. We feel lied to -- work hard, and the rewards will come? It's easy to feel bitter and cheated these days.
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