Unemployment Actually 10.2 Percent, 1 in 5 Workers Can’t Find Full-Time Job, Says Gallup
Thursday, March 17, 2011
By Terence P. Jeffrey
(CNSNews.com) - One out of five American workers who wants a full-time job cannot find one, according to a Gallup survey released today.
This news comes 25 months after President Barack Obama signed a stimulus law designed to keep the U.S. unemployment rate under 8 percent.
Gallup derives what it calls the “underemployment” rate by combining the percentage of unemployed workers with the percentage of workers who are employed only part-time but want a full-time job.
As of mid-March, Gallup reported in its new survey, 10.2 percent of American workers were unemployed and 9.7 percent were working part-time but wanted a full-time job. That equals an underemployment rate of 19.9 percent—or approximately one out of every five workers.
According to Gallup, the employment picture in the United States is virtually unchanged from a year ago.
In mid-March 2010, 10.3 percent of American workers were unemployed and 9.7 percent were working part-time but wanted a full-time job--yielding an underemployment rate of 20.0 percent. That compares to today’s 19.9 percent underemployment rate.
On Feb. 17, 2009, Obama signed an economic stimulus law that the Congressional Budget Office then-estimated would cost $787 billion. In Jan. 2009, Obama’s then-top economic adviser Christina Romer had reported that this stimulus, if enacted, would keep the U.S. unemployment rate under 8 percent.
Last month, the Congressional Budget Office published an analysis of the economic impact of the American Recovery and Reinvestment Act (ARRA), otherwise known as the stimulus. CBO now said it estimated the jobs bill had cost $821 billion, not $787 billion. It also said it believed the positive effect of the stimulus on economic output had peaked in the first half of calendar year 2010 and that the stimulus' positive effect on jobs had peaked in the third quarter of calendar year 2010.
“The effects of ARRA on output peaked in the first half of 2010 and are now diminishing, CBO estimates,” said the report. “The effects of ARRA on employment and unemployment are estimated to lag slightly behind the effects on output; CBO estimates that they began to wane in the fourth quarter.”