Not only was the methodology by which the rate of unemployment changed during the Clinton administration, there is no way to account for people who’ve gone back to work at a much lower salary than they earned before the downturn:
With unemployment as high as 9.4% and job prospects scarce, job seekers are willing to accept as little as half of what they were making before, if it means finding a job.
In a recent survey, 65% of out-of-work respondents reported willingness to accept wages up to 30% lower than their previous compensation. And, 3% and 4%, respectively, said they would accept up to 40% and 50% of prior wages, according to the 2009 Annual Career Fair Survey released by Next Steps Career Solutions.
9.4% is deceptively low. As the chief of the Federal Reserve Bank of Atlanta admitted, when discouraged workers — people who’ve given up looking — are included, the real unemployment rate is about 16%.
When it’s calculated using pre-Clinton methodology, it’s closer to 21%. And that still doesn’t include the people working on the cheap.