“Government figures understate the actual unemployment rate and misery index, says David John Marotta, president of Marotta Wealth Management in Charlottesville, Va.
He and colleague Megan Russell write in a commentary to clients that the true unemployment rate stands at a whopping 37.2 percent, rather than the 6.7 percent calculated by the government for December.
And the misery index, which adds together inflation and unemployment, totals 14.7, the worst in almost 40 years, rather than the 7.5 that would be derived using government data.
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The government’s unemployment rate errs because it includes only the unemployed who are looking for a job, Marotta says.
His 37.2 percent reading “obviously includes some people who are not or never plan to seek employment,” Marotta and Russell explain. “But it does describe how many people are not able to, do not want to or cannot find a way to work.”
The government also understates inflation…”
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