Friday's Unemployment numbers from the Bureau of Labor Statistics (5.8 percent headline unemployment, 11.5 percent including those involuntarily part-time) look good. But the effective numbers, that is, numbers comparable to those put up before the financial crisis, not so much.
October 2014 IDEA effective unemployment rates: Headline down 0.2 percent (to 9.2). All-In (U-6) down 0.3 percent (to 15.0).
Labor force participation edged back up from its 35-year low of 62.7 in September to from 62.8. The official headline rate from BLS dropped to 5.8. The combination led the decline in effective unemployment to 9.2 percent. The official all-in U-6 measure dropped by 0.2 percent, leading the (adjusted) IDEA effective unemployment rate to shave 0.3 percent to 15.0. This is the best improvement in months, but the rates are still at recession levels.
The apparent confusion over labor market conditions among policy-makers, particularly at the Federal Reserve Board, is entirely unnecessary. The unemployment rate is up and the labor force participation rate is down, and we hear much discussion about how to disentangle the effects. But in fact, under reasonable assumptions, they measure the same phenomenon -- unemployment.
read more at: IDEA Effective Unemployment Rates