In January, the same month that unemployment “fell” to 9.7% (by which we mean we only lost a few hundred thousand jobs, and we hadn’t yet done the inevitable upward revision), we learn that about 20% of Americans were underemployed or unemployed and finding it hard to make ends meet. This compared to the BLS numbers at U6 at 18%, which have been widely criticized, but are still being used. This means that the Labor Departments reliance on the birth-death model in recession. is yet again called into question.
BTW, several commenters correctly pointed out that I made an error in my original post – make sure you read their comments and corrections for clarification.