For the past couple of months I have been writing about the "real" unemployment rate, the U-6 rate, the rate that no major media outlet seems to know about or wants to write about.
This past month, the U-6 unemployment rate surged to 16.4%. The rate includes:
1.) Marginally attached workers - people that want a full time job, have looked for one in the past, but are no longer looking for work.
2.) Discouraged workers - those that have given a job market reason for not looking for a job.
3.) Persons employed part time for economic reasons - in other words, somebody that wants a full time job but has had to settle for part time work.
Well, finally, one major media source, CNN, has finally recognized the gravity of the data and elected to feature a blog/article about it.
The reason this unemployment number has relevance for the housing market is because Washington's housing plan is contingent upon the ability of first time home buyers to drive a housing recovery.
The issue of course is that not only is the pool of first time home buyers not an infinite resource, but more Americans are also losing their homes as is evidence by the rising 12.07% delinquency rate. There is going to be a continued supply and demand imbalance for housing so long as the rest of Americans, those that are able to invest in real estate, are left out of a housing stimulus plan.
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