If you believe that the laws of supply and demand continue to hold true, then the real unemployment rate is much closer to 9% than 4.1%.
The only reason economists and Fed officials ignore this data is that it dispels the pretty economic picture they wish to paint.
Does anyone else see a problem here?
Man sees what he wants to see and disregards the rest. If you want to see low unemployment, you find data that gives you low unemployment. You don’t look at competing measures.
And this is in spite of the fact that most Fed economists truly believe in the Phillips curve. They just don’t believe in it enough to take it to its logical conclusion like 720 Global did.