In May, the official unemployment rate was 13.3%. However, the unemployment rate that takes into account all those who are out of work as a result of the virus was 19.7%, and the unemployment rate that includes only those who are out of work and don’t have a reasonable chance of being called back to a prior job was 10.7%.
The official unemployment rate was 13.3% in May. However, if you consider not just the 21.0 million officially unemployed, but all 32.5 million workers who are either officially unemployed or otherwise out of work as a result of the virus, that jumps to 19.7%. That is nearly one in five workers.
Of the 32.5 million workers who are either officially unemployed or otherwise out of work because of the virus, 11.9 million workers, or 7.2% of the workforce, are out of work with no hope of being called back to a prior job; 5.7 million workers, or 3.5% of the workforce, are out of work and expect to get called back to a prior job but likely will not; and 14.8 million workers, or 9.0% of the workforce, are out of work and can reasonably expect to be called back. That means the share of the workforce that is out of work and has no reasonable chance of being called back to a prior job is 10.7% (7.2% + 3.5%).
All three of these unemployment rates are extremely elevated across all demographic groups. However, the highest rates are found among Black and brown workers, women, and particularly Hispanic, Asian, and Black women. Young workers and workers with lower levels of education have also been hit disproportionately hard.
It is important to note that the prospect of even those who can reasonably expect to be called back to a prior job actually getting called back will require Congress to act. For example, if Congress doesn’t extend the extra $600 in weekly unemployment insurance payments, that will cost us 5.1 million jobs over the next year, and if it doesn’t provide fiscal aid to state and local governments to fill in their budget shortfalls, it will cost another 5.3 million jobs by the end of 2021.
Chosen excerpts by Job Market Monitor. Read the whole story @ Nearly 11% of the workforce is out of work with zero chance of getting called back to a prior job | Economic Policy Institute