The invisible unemployed

Though the recent trend in an overall lowered unemployment rate seems to calm the general public and point to a progressive economy, the statistic (7.9 percent in October 2012, 7.3 percent in October 2013) ignores an invisible group of people - discouraged workers. A discouraged worker is an unemployed person who has given up looking for work. This person is no longer considered as part of the labor force. Discouraged workers face the same issues as unemployed persons; both are victims of poor job prospects. When these people have given up hope, the measured unemployment rate declines. According to the Bureau of Labor Statistics, 6.9% of the total number not in the labor force currently wanted a job in October 2011. The number remained steady at 6.9% in October 2012, and recently has shifted to 6.2% in October 2013. However, the number of people out of the labor force between October 2012 and October 2013 has also grown by over 3 million. This may indicate that out of those no longer in the labor force, the people included within the steady 6.9% in both 2011 and 2012 gave up looking for work in 2013, leading to a smaller percentage of people currently wanting a job.

Murray indicates male unemployment has remained higher in low-income areas such as Fishtown rather than high-income areas such as Belmont. However, recent college graduates and educated middle-aged adults seeking positions are more likely to be found in Belmont. Most of these educated individuals are not seeking blue-collar service/factory jobs that can be more readily found than white-collar positions. Murray's statistics of lower rates of unemployment in Belmont could be ignoring the amount of discouraged workers who are not actively seeking employment or have chosen to retire early. As part of a high-income family, many individuals can still expect financial support from their families/existing assets. In contrast, the uneducated must be persistent and keep looking for work. Low-income families more often depend on living paycheck-to-paycheck and cannot live comfortably without a regular source of income. There will be less discouraged workers among those who cannot afford to live without wages. Belmont's unemployment ratio may actually be higher than what Murray documents, should the ratios be adjusted for discouraged workers. Murray might be ignoring an important issue. In communities such as Fishtown, there could be a lower rate of discouraged workers among those out of the labor force. Among communities like Belmont, there could be a higher rate of discouraged workers - because they can afford it.