Thread: A Huge Pool of Potential Workers: Native-Born Americans

A Huge Pool of Potential Workers: Unemployment, Underemployment, and Non-Work Among Native-Born Americans

By Steven A. Camarota, Karen Jensenius

December 2009
Memorandums

Download a pdf of this Memorandum
http://www.cis.org/articles/2009/q3-2009-u6.pdf

While the current high rate of official unemployment is well known, there is a broader measure of employment that the Bureau of Labor Statistics calls U-6. It includes the unemployed as well as people who would like to work, but who have not looked for a job recently and those involuntarily working part-time. In addition, there are individuals who are not in the labor force at all. A look at these numbers shows the situation is particularly bad for minorities, the young, and less-educated Americans. These are the workers who face the most competition from immigrants ─ legal and illegal. (All figures in this report are seasonally unadjusted and are from the third quarter of 2009.)

Number unemployed or underemployed:

As of the third quarter of 2009, there are 12.5 million unemployed native-born Americans, but the broader U-6 measure shows 21 million natives unemployed or underemployed.


There are 6.1 million natives with a high school education or less who are unemployed. Using the U-6 measure, it is 10.4 million.


In addition to those less-educated natives covered by U-6, there are another 18.7 million natives with a high school education or less not in the labor force, which means they are not looking for work.


The total number of less-educated (high school education or less) natives who are unemployed, underemployed, or not in the labor force is 29.1 million.


There also are 6.6 million native-born teenagers (16 and 17) not working.


To place these numbers in perspective, there are an estimated seven to eight million illegal immigrants holding jobs.
Unemployment rates for less-educated and younger workers:

As of the third quarter of 2009, the overall unemployment rate for native-born Americans is 9.5 percent; the U-6 measure shows it as 15.9 percent.


The unemployment rate for natives with a high school degree or less is 13.1 percent. Their U-6 measure is 21.9 percent.


The unemployment rate for natives with less than a high school education is 20.5 percent. Their U-6 measure is 32.4 percent.


The unemployment rate for young native-born Americans (18-29) who have only a high school education is 19 percent. Their U-6 measure is 31.2 percent.


The unemployment rate for native-born blacks with less than a high school education is 28.8 percent. Their U-6 measure is 42.2 percent.


The unemployment rate for young native-born blacks (18-29) with only a high school education is 27.1 percent. Their U-6 measure is 39.8 percent.


The unemployment rate for native-born Hispanics with less than a high school education is 23.2 percent. Their U-6 measure is 35.6 percent.


The unemployment rate for young native-born Hispanics (18-29) with only a high school degree is 20.9 percent. Their U-6 measure is 33.9 percent.


The overall unemployment rate for immigrants (legal and illegal) is 9.9 percent. Their U-6 measure is 19.6 percent, which is significantly higher than the rate for natives.


The unemployment rate for immigrants with less than a high school education is 12.3 percent. Their U-6 measure is 27.4 percent. The unemployment rate for young immigrants (18-29) with only a high school education is 12.2 percent. Their U-6 measure is 25.2 percent.
Discussion

The unemployment rate excludes some people who may want to work, but who are not actively looking for a job and are therefore not officially unemployed. Also, the official unemployment figures do not include those working part-time, but who want to work full-time. In order to get a broader or more comprehensive measure of unemployment and underemployment, the Bureau of Labor Statistics (BLS) developed the U-6 measure (the official unemployment rate is referred to as U-3). The methodology section of this report explains in detail who is included in the U-6 measure of unemployment. Table 1 reports unemployment figures and the broader U-6 measure of unemployment and underemployment. This more comprehensive measure of unemployment includes those who are officially unemployed, those who are involuntarily working part-time, and those “marginallyâ€

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