Americans Still Struggling to Find Work

• President Obama is happy to take credit for 4.9 percent national unemployment, the lowest level in his presidency.

• However, a more complete count of those out of work shows a national unemployment figure of 8.5 percent.

• According to former Federal Reserve governor Kevin Warsh, “at 8.5 percent, it is easier to understand the frustration of the country and the politics of this moment much better.”

The recent jobs report showed that the national unemployment fell to 4.9 percent in January. President Obama is happy to take credit for the figure falling below 5 percent for the first time in his presidency. However, a deeper look shows many Americans continue to struggle to find work.

Real Number of Unemployed Americans

Unemployment rate, seasonally adjusted, through January

The measure of unemployment reported by the Bureau of Labor Statistics counts all people who are without jobs and who are actively seeking and available to work. In January, there were 7.8 million people counted as unemployed. This figure does not include those who are out of work but have given up searching out of frustration (2.1 million people), or those who are working part time but would prefer full-time employment (another 6 million). Combined, the real number of unemployed Americans is 15.9 million.

Former Federal Reserve governor Kevin Warsh has offered a strong explanation for the popularity of political populists at a time when the unemployment rate is hovering at 5 percent. He suggested that the economy has “deteriorated” recently. Adjusting the unemployment rate to reflect the true number of people who are involuntarily not a part of the labor force, the rate would be closer to 8.5 percent. “At 8.5 percent,” he said, “it is easier to understand the frustration of the country and the politics of this moment much better.”