Actual unemployment in the USA

Most of the information I see, hear and read concerning the US economy is either wrong, inaccurate to some degree, or outright political in nature. The second problem is the use of government statistics incorrectly by overstating the information or using it  to prove a political point. Thus, I will undertake herein to present clear and understandable information the average person can use to discern  the miserable state of the US economy. In the next few weeks, I'll be discussing the National Debt, the Worlds Economies as they relate to the USA, the problems associated with Federal Non-discretionary spending.

Today we'll start with the national unemployment problem.

First we need to set to set some rules about what unemployment, participation rates and non-participation all really mean.

According to the Bureau of Labor Statistics (BLS) unemployment is defined as being over 16, not on Social Security, not working and actively seeking employment. At this time BLS says the unemployment rate is 7.6%.

BLS says the "Civilian"  Participation Rate (CPR) is 63.7% today. This is defined as Total Adults divided by Total Population minus Population Under 18.  A very, very big number - which leads one to assume that there must be millions and millions of people not working in the Country. Which is to a great degree misleading.  We need to define who in the CPR are really Non-participants  and who have given up looking for a job.

   1. 52.5 million people are on Social Security and not looking for work
   2. 8.363 million Adult Illegal Aliens are in the USA and not counted
   3. 11.75 million Adults are attending college full time not looking for
        work.  
   4. 2.27 million Adults are in prison or long term jail.

For a total of  74.88 million people not looking for work but have not
dropped out of the work force.  If you add these 74.88 million to the population under 18 and then divide that by total population you get 27%. Then subtract the unemployment rate and you get 19.2%.  Which the BLS says is the Adult Non-participation Rate. Then take the Total Population and subtract the Under 18 population and all on Social Security  recipients and the Unemployed and multiply by 19.2%. This comes out to 33.18 million people.

But we're still not done we still have to remove the College Students, the Illegal Aliens and those Incarcerated which leaves 10.67 million people who have dropped out of the work force.  These 5.7% who are not actively looking for work must be added to the 7.6% who are classified as Unemployed for a Total Unemployment of 12.7% or 24.98 million people.

The 5.7% who have dropped out are no longer receiving unemployment but are now on food stamps and other assistance.  The Unemployed are receiving both. These people make up 53.1% of all Americans collecting food stamps.

Work Sheet

     

Calendar Year 2012

       Title                                        Percentage                   Total

Total Population                            100.00%                        314,000,000

 Under 18                                       23.70%                          73,418,000
Over 65 on SS                                13.80%                          33,832,000
Over 62 on SS                                  2.93%                            9,215,425
Unemployed                                     7.60%                          14.214,628
Non-participating                             19.20%                          33,181,430
        Illegal Aliens                             3.90%                          11,000,000
                  Children                        23.70%                            2,607,000
                  Adults                           76.30%                            8,393,000
       Adults in College                         3.74%                          11.374,000
       Adults Incarcerated                       .72%                            2,270,000
Real Non-participation Rate                 5.76%                          10,768,430
Total Working Adults in USA              32.77%                        153,853,145
       Government Workers                    7.60%                          11,692,839
       Private sector workers                 92.40%                        142,160,306
Workers per SS recipient                   2.93/1
Average income per Person                                                    $24,085.00
Average SS tax per year                                                           $2.505.00
SS Tax rate 2012                                10.40%
Government SS receipt                                            $385,377,151,012.00
Average SS check per person                                                   $1,476.00
Total SS paid out 2012                                              $775,600,000,000.00
SS paid out of general income                                   $390,222,488,958.00
SS Trust Fund balance 2011                                   $4,800,000,000,000.00
SS Trust Fund balance 2012                                   $4,601,777,151,014.00
US Population Growth Rate                  .70%