Chart of the Day: Alternate U.S. Unemployment Rate

Here is a chart created by Shadow Government Statistics (SGS) presenting an alternate measure to the official unemployment statistics. According to the website,

The seasonally-adjusted SGS Alternate Unemployment Rate reflects current unemployment reporting methodology adjusted for SGS-estimated long-term discouraged workers, who were defined out of official existence in 1994. That estimate is added to the BLS estimate of U-6 unemployment, which includes short-term discouraged workers.

The U-3 unemployment rate is the monthly headline number. The U-6 unemployment rate is the Bureau of Labor Statistics’ (BLS) broadest unemployment measure, including short-term discouraged and other marginally-attached workers as well as those forced to work part-time because they cannot find full-time employment.
 

The SGS Alternate unemployment figure is according to the website then about 23% as of 7 September 2012, or about three times higher than the Official (U3) rate depicted in the same chart.