Oakmont Advisory Group Mar.2015. | Page 9

Within the Bureau of Labor Statistics' U-6 unemployment figure are a couple of groups of people not found in the frequently cited and published U-3 figures. One group uses a government euphemism called the "marginally attached" workers who are the people who have quit looking or searched without any success over the past year.

It's ironic that the government has decided to refer to these people as "marginally attached," when a large percentage of them were very attached to good jobs six or seven years ago. The other group is people who had full-time jobs and who now have to settle for part-time work instead. These groups are significant when calculating the very real employment numbers, since both groups are now disaffected knowing the employment status they enjoyed in the recent past.

There is also another group that is not counted in either the U-3 or the U-6 numbers. This third group has increased under the current administration. They are people who don't have a job and don't want a job.

Not Great but Improving

In light of the difference in these numbers, and what the higher number reveals about the reality of the job market in the U.S., Bloomberg reports that "an improving job market is doing wonders for U.S. consumer confidence." The publication claims that Americans have become more optimistic recently. They say that when you combine gains in payrolls, fewer firings and lower gas prices, it is likely that "spending will strengthen."

Bloomberg also reports that their Consumer Comfort index was at its highest point in February since January of 2011. They say that in a recent survey of their poll respondent's sentiment, 35 percent felt that the economy was getting better.

New unemployment claims, which have fallen slightly, make up the big job market news. Those U-3 numbers were impressive, with a drop of 21,000 in new unemployment claims in mid-February. Average U-3 unemployment claims have dropped by 16 percent over the past year. Associated Press also reports that the government claims that the number of available jobs "rose in December to a 14-year high."

While the job market has made some progress in the past year or two, it's far from what it once was.