We are living in a world where millions of people have lost their jobs… and we have seen the most rapid spike in unemployment in history. But some things have been going on during this time that many people might find a bit shady to say the least. This is the strange unemployment crisis.


In early February of this year, everything seemed relatively fine, as the unemployment rate was at a low 3.5%, and the biggest economic stories in the world at the time were some cancellations of flights to China, and a mild slowdown in the manufacturing sector of China.


But as we all know, things changed fairly rapidly. In late february, the stock market began to crater, and it had its worst week since the financial crisis of 2008.

China’s Manufacturing sector completely shutdown during that time, and in mid to late March, Lockdowns were imposed throughout the entire world.


All of these factors caused business closures, bankruptcies, and layoffs at a rate that the world had never seen before.

I mean, On March 1 of 2020, the unemployment rate in the United States was still at healthy 4%, but by late April, that number ballooned to a whopping 14.7%, a number that we hadn’t seen since the great Depression. And it was expected to get worse. Much worse. In fact the United States government was preparing for an unemployment rate of above 20% in May, but that is not what happened.

You see, unemployment actually dropped to 13.3% in May, which led many to believe that the re-opening of some businesses, many of which aren’t allowed to operate at full capacity, led to the drop in unemployment rate. But something seemed a little fishy about those numbers.

Because it was expected that we would reach a 20% unemployment rate at some point during this crisis, yet it was being reported that we didn’t come anywhere close to that mark. But as it turns out, we did…


So the very first thing that you should know is that the unemployment spike happened so fast, that the Labour Department had trouble keeping up with the influx of new unemployment data. So they ended up misclassifying millions of Americans in relation to their employment status.

The Labour Department ended up classifying millions of people as employed but not working’, when they should have been in the ‘temporary layoff’ category, and therefore, unemployed.

If the Labour Department were to have properly classified these individuals, than the unemployment rate in April would have been 19.7% in April, and 16.7% percent in May. Rates that are much closer to the expected 20% number.

But we are not done there. You see, what many people don’t know about the unemployment numbers, is who is actually considered unemployed.

You see, the unemployment rate is not a simple equation of the amount of adults that are unemployed within a population. It is much more complex, and I will explain some of the reasons why the unemployment rate is much higher than you think.

For example, did you know that if you are not looking to work, and are unemployed, than you are not counted as unemployed in the United States. And this somewhat makes sense because there are plenty of stay at home adults that are able to work, but are doing time consuming and important activities like raising children or caring for loved ones.

But what we saw in the last 2 months is an increase in the amount of people who are no longer looking to work, and therefore are no longer counted as unemployed.

We have also seen a massive reduction in the amount of work hours for individuals, and an increase in the amount of people goign from full-time work, to part time work.

So if you were to include those 2 factors into the reported unemployment rate, than the rate would be much closer to 22%.

Now, if you wanted to go one step further, we could talk about the real EMPLOYMENT rate. You see, what many people may not think about, is that majority of people in any country actually do not work. That is because when you include kids, elderly people, disabled people, and unemployed individuals… then currently there are only about 135 million people in the United States that are working… out of a population of nearly 330 Million.


Meaning that right now, only 40.9% of the population is actually employed, and currently working.
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