January job losses have the unemployment rate inching closer and closer to 8%. But how accurate is that number really?
Some experts feel it’s a fairly inaccurate figure … on the low end! The current rate considers workers employed if they are working part time — even if the economy forced their reduced hours.
If the unemployment rate actually accounted for slashed hours, or “underemployment,” that figure would skyrocket to 13.9%. That’s according to an analysis by Merrill North American economist David Rosenberg.
The study also states that underemployment jumped almost 70% from the previous year.
Studies such this may offer some leverage when it comes to retaining staffers thinking about bolting — particularly if the worst toll the economy has taken on your company was in the form of salary or hiring freezes.