Here’s why the real unemployment rate may be higher than reported
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The unemployment rate in the U.S. improved last month as millions of people returned to the workforce.
But the official 13.3% unemployment rate, while still high relative to any point since the Great Depression in the early 20th century, likely understates the economic damage wrought by the coronavirus pandemic.
The real unemployment rate is likely at least 16%, according to the federal government.
That would mean roughly 1 in 6 people can’t find work.
The Bureau of Labor Statistics, which published its monthly jobs report Friday morning, admitted the official unemployment rate may be low relative to reality due to an error in data collection.
Around 21 million Americans were unemployed as of mid-May, a reduction of 2.1 million people from a month earlier, according to BLS data.
[Source: CNBC News]