by Michael Lodge
Every month the Department of Labor (DOL) puts out it’s unemployment report called an Economic News Release. This week the unemployment rate is reported through the DOL report U-3 which says it is at 4.7%. This report only looks at the last few weeks and does not take into consideration of those who have been out of work for a long time or who has dropped out of the report completely and stopped looking. This number is not a true picture of where the unemployment rate really is. Politicians love the U-3 report because it always reports a lower number then the reality of the situation. It is unfair to the American people to be told that the unemployment rate is such a low number.
However, the DOL reports a better report that no one reads. The U-6 report captures those individuals that are marginally employed, have been out of the labor force, and gives a truer picture of where the country is really at. As of today the true number of unemployment is at 9.7%. At this time last year of May 2015 the unemployment rate was at 10.4% so there has not been that much of a movement to get people back to work.
Last week on Friday the country only created 38,000 new jobs. Not that many for a country this size. It is my feeling that Congress should force the department of labor to come up with a better way to analyze unemployment and job creation. Under the Obama administration they have done nothing to stimulate the economy with programs to help small business and companies in the hiring process. Rather, they have come up with more regulations that has placed a burden on the American job creation. Small business is still not sure what Obama is going to do next. So everything remains stagnant until business sees what is going to happen on the political field this November.
So if the President and other leaders are proud of a employment rate that only gives a partial look at the real world of unemployment – shame on them. Read the U-6 report of the department of labor each time the government comes out with their numbers.
The United States Corporate tax rates are the highest in the world. Let me give you an example.
So if you look at the numbers above you can see why corporations send their companies off shore to do business. If they were to keep their profits here and get taxed at a federal tax rate of 41.1 percent, plus a state corporate tax rate, the companies would not be able to compete on the global stage. So this needs to be addressed by Congress in order for American business to remain competitive in the global picture.
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