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Real unemploytment rate higher argue economists Original Source Link: (May no longer be active)
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Economists Question Employment Rate
Written by 9 News
Last Updated: 3/17/2004 4:22:28 AM
While terrorism and the war in Iraq are major concerns, the economy is still shaping up to be the issue of Campaign 2004. Specifically jobs. The job creation rate last month was stagnant at best. This is according to the Labor Department.
Unemployment is officially at five-point-six percent. But some economists argue the real figure is higher. Instead of applying for unemployment benefits, many job seekers are living off their severance or spouse's income and benefits. Therefore they aren't part of the official numbers.
Jim Jarvis who is used to selling high tech products and working in International Business Development, is now selling himself.
"I am a statistic now," Jarvis says. He was downsized eight months ago. "The industries I'm in are still somewhat depressed," he said.
"What I did initially is I said nothing is going to happen in July or August so I'm going to enjoy my vacation."
When September came Jarvis began looking for work in earnest. Meanwhile, he and his wife have been living off of his severance package and her salary as a teacher.
"I've gone through most of the separation period now. So cash flow has now gone negative. Cash flow was positive for a while there. We're now digging into those savings," Jarvis said.
So for the first time in his life, just a few weeks ago, Jarvis applied for unemployment. He is now finally part of the official numbers count.
"I think when you start exhausting your own personal resources I think people feel it's a sense of pride," he said.
Steve Gallison runs the professional outplacement assistance center "POAC." The center provides free service and is run by the state of Maryland for unemployed managers and technical professionals.
Gallison sees a lot of clients who did not apply for unemployment until they absolutely have to. But he warns the higher up the totum poll you were, the longer it is going to take to find the next job.
"It's a frog kissing contest to some degree. You've got to kiss as many employers as you can to find that prince or princess that is going to hire you," Gallison said.
And that search on average, is now taking unemployed Americans five months or longer. And some economists wonder how many more Jim Jarvis' are out there, who should be part of the unemployment numbers but aren't yet.
Jarvis and the folks at POAC say they think the job market is showing signs of improvement. But it's still tentative; especially in the world of I-T and telecommunications.
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