Underemployment at 20%

I have said that unemployed is only one number to follow, the other is underemployed. We have many people out of work, but as this report shows, there are many underemployed.

Underemployment hits 20%, Mid-March 2010

Why is this important? If people still have a job, they can pay bills and put food on the table. But, if they are now making let's say 30%-50% less than they used to make it makes it harder to pay the bills. Something will have to give...will it be mortgage, utilities, car payment, credit cards, who knows, but something will be sacrificed.

"The danger associated with focusing on unemployment is reflected by the recent statement of Morgan Stanley economists suggesting that the U.S. may add as many as 300,000 jobs in March owing to an improvement in the weather, economic growth, and the government's hiring of temporary census workers. If anything close to this number of new jobs is announced by the government in early April, there is likely to be an enthusiastic, possibly even celebratory, response. Government officials are liable to tout the continued benefits of last year's stimulus and the future benefits of the new jobs bill. Many Wall Streeters will likely argue that the surge in jobs is simply another confirmation of the strength of the overall economic recovery.


However, before policymakers celebrate too much, they should note Gallup's recent findings involving its new, more inclusive measure of underemployment.."

If there is an increase in jobs you can bet the MSM will pick that up and report it. I wonder if they will report the 20% underemployed. Also remember if jobs are added that some of these are likely to be these underemployed workers and the 17,000+ census workers. I will be watching for the April unemployement reports when they are released and let you know my thoughts.