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Fed’s Powell Say Real Unemployment is at 10%

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The dismissed employee clutched his head against the background of the US flag-Real Unemployment-ss-featured

According to Federal Reserve chairman Jerome Powell, the US real unemployment rate is at 10%. If you factor in misclassification errors in the government numbers, the real number is higher than what the Bureau of Labor Statistics reported at 6.3% last week. Powell noted that around 4 million jobless Americans stopped looking for jobs. This means they officially don’t count as unemployed. If they were, the unemployment rate would be closer to 10%. 

RELATED: US Unemployment Rate Falls to 10.2% In July

Far From a Strong Labor Market

“We are still very far from a strong labor market whose benefits are broadly shared,” Powell said. He spoke via virtual speech for the Economic Club of New York on the state of the labor market. “The pandemic has led to the largest 12-month decline in labor force participation since at least 1948,” he added.

While the unemployment rate already fell from the March high of 14.8%, it remains higher than pre-pandemic jobless levels. Last February 2020, the US recorded a 3.5% unemployment rate, the lowest level in almost 50%. Right now, more than 10 million Americans remain jobless. January recorded 5 million workers leaving the market this month.  

Strengthening the Labor Market

“The Bureau of Labor Statistics reports that many unemployed individuals have been misclassified as employed,” Powell said. “Correcting this misclassification and counting those who have left the labor force since last February as unemployed would boost the unemployment rate close to 10 percent in January.” Meanwhile, Americans are saving more during the pandemic and holding off on the big spending. But, a huge divide between those with safe, cushy jobs and those struggling to get by. Meanwhile. job losses among the highest-earning 25% of workers stood at 4%. In contrast, the poorest one quarter is at 17%, according to Powell. 

Once the pandemic ends, it’s still a race to get jobs. “Given the number of people who have lost their jobs and the likelihood that some will struggle to find work in the post-pandemic economy, achieving and sustaining maximum employment will require more than supportive monetary policy,” Powell said. “It will require a society-wide commitment,” he added, stressing the importance of low-interest rates. “We will not tighten monetary policy solely in response to a strong labor market,” he added. This means they won’t hike rates until the recovery happens to all workforce sectors. During the last Fed reserve meeting, the Open Market Committee decided to retain interest rates at the current level of between 0 and 0.25%.

$1.9 Trillion Package

The majority of Democrats are still working on details for their proposed $1.9 trillion stimulus package. This includes stimulus checks to American households and enhanced unemployment benefits. It also allotted funds for a federal vaccination program for COVID-19.  

Republicans balked at the price tag, which they say would add to the national debt and cause more inflation. However, Federal Reserve policymakers supported the idea of prioritizing economic aid over debt and borrowing concerns. Despite the gradual recovery, Powell said that inflation levels continued to fall short of expectations.

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Watch the CNBC News video where Federal Reserve Chairman Jerome Powell said the US unemployment rate is around 10% instead of the 6.3% rate reported:

Do you agree that given higher unemployment rates, do Americans need the stimulus package sooner than later?

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Do you think unemployment numbers are higher than they seem? If this is the case, do you see the immediate need for more economic aid for Americans? Let us know what you think by sharing your comments below.

14 Comments

14 Comments

  • Gwen Crosson says:

    The agenda of this administration is to destroy America. Communism is the goal.

  • Branden Oconnell says:

    Your dumb af if you think Biden is a communist you dumb nazi try going to 4chan with the other inbreeds

  • Mjk says:

    Anyone who believes Biden is the answer to our problems, IS the problem.

  • Kerrolynn Titus says:

    I agree with gwen, and pity branden. The politicians need to do their jobs and help hurting Americans get back to having jobs of their own. They’re despicable hate mongering wastes of taxpayer’s money who have no plan but to destroy, our people (just beginning with Trump) and our great nation. They are domestic terrorists and their fraudulent, treasonous acts should place them all in Guantanamo…!/

  • Carey says:

    I agree They should all be put in Guantanamo Maybe that would make they stop & think about how they aren’t helping Americans with the hatred they have for this country. Then the IRS should take all their homes & use it to pay down the ridiculous debt they are making on foolishness & not to help Americans, I know I am just dreaming for once since Biden was elected we could be happy about they getting I can’t say the word here it begins with F and ends with K

  • Mike Dunkin says:

    What I see is a political ware between 2 parties and the AMERICAN PEOPLE for which they serve is paying a tremendous price. There isn’t a person in either party that deserves to collect his pay. When the AMERICAN tax payer stops paying there taxes, then maybe the people working for us will get the picture. And for now I would say we need to cut there pay to 25%. Or if they are not productive FIRE them. This is OUR COUNTRY and we demand better from you elected employees.

  • john says:

    The unemployment numbers are calculated wrong for a real number for years. We should accept a definition and go by it. The number is most wrong by counting those who apply for unemployment benefits, but the definition is accepted. Each political party makes their own claim. There are many more important things to discuss, this is a self imposed importance for the individual who says it.
    thanks

  • EDWARD SPENCER says:

    The Government needs to reopen businesses and start paying serious attention to the Federal Debt! Deficits and Federal spending are the biggest problems. We can’t just spend our way out of this.

  • Sharon says:

    I need to disagree with one comment. Not all those in Congress are against the people. There is a small faction of conservative lawmakers that are trying to look out for us but they don’t get any recognition because the media would rather publish those who are destroying our country. Two parties are fighting between themselves. The one party is fighting with themselves. Certain progressives are taking over the party. One of them lie about everything and is a real drama queen and the Speaker is afraid of her. The hate for Trump is a sickness invading Congress. Impeaching Trump the second time is a political farce since they did it before there was evidence and now we have to pay for another trial that should never have begun.

  • Larry M says:

    We don’t need a stimulus as much as getting the government and their ineffective solutions out of the way. The more they try to “help”, the worse off we are, but they have gained more control. “Politics is the art of looking for trouble, finding it everywhere, diagnosing it incorrectly and applying the wrong remedies.” Groucho Marx

  • Nemo says:

    Biden is useful idiot for the Marxist agenda the “progressives” are pushing to “redefine America”. They want corporate fascism and complete control over the economy. We will continue to see arbitrary and freedom killing policies that destroy jobs, the mom and pop business that operate outside their immediate control, and that make people more dependent. They will continue to shovel fiat currency into the bottomless hole of ever increasing dependents. The bulk of the jobs will be off-shored and what remains of business will be forced to operate as an instrument of the corporate/government oligarchy. Essentially you are part of the Party or you starve to death and they frankly would prefer the latter.

  • Preston says:

    The Marxist Democrats are in fact the enemy from within. They have stated they want to destroy this Republic and turn it into a socialist country. They don’t care about the citizens they have sworn to protect. They keep attacking our Constitution. They attack our Freedom of speech and Religion. They are especially attacking our 2nd Amendment rights because they know they need to confiscate all guns because they know that to control the people they can’t let them have guns. That is why our founding fathers put the 2A in our Constitutional rights. So we can protect ourselves against a tyrannical government which is what we have with the Marxist Democrats. One only needs to look at the Democratic controlled States, they have turned them into third world S—-holes. Biden and Harris need to be impeached. Pelosi Schumer, Pelosi and the Squad need to be recalled and the Marxist BLM and ANTIFA terrorist need to be tried for treason and executed.

  • Lewis Lawhorn says:

    The only thing that can an could be done is get rid of but speakers of both parties an vote on eliminating all parties in the house an congress so the people We put in office can vote the real way that they feel an what will really help there state an country

  • Jay D Danley says:

    Yes the number are higher . There is a lot of states that people and families cant even apply or file ckaims . Kansas has over 28000 claimants that cant even file for pua program thats not peuc or even regular unemployment.

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