Current Unemployment Rate? 17.5%
Seriously? 17.5% unemployment? Yes, if the government would measure unemployment as they did 80 years ago. The government’s calculation of 7.2% unemployment does not take into consideration millions of Americans who could not find a job or could not get full time employment. So, if you’re that person with the master’s degree that’s working part time at your local grocery store, you’re not included in the calculation. Technically you have a job.
The government also tracks the “U-6” rate, which includes discouraged and underemployed workers. Right now it’s 13.5%. Currently we’re at a 15 year high for unemployment. The number of Americans filing for unemployment is at its highest level in a quarter of a century.
During the Great Depression, unemployment hit 25%. But that wasn’t until 4 years after the stock market crash. 1 in 4 Americans was out of a job. We think 7.2% (or 17.5%) is bad? Hopefully we won’t see 25%. That would be devastating. My advice? If you’ve got a job, thank your lucky stars. Keep saving all you can, and be as thrifty as possible. You can never have too much money saved!