With the unemployment rate at its highest point since the Great Depression, many are questioning whether an economic recovery is really beginning or not. The national unemployment rate is over 10.2% but what most people don’t hear is the “real” jobless rate is around 17.5%. Nearly 1 in 5 Americans is either out of work or under-employed. Those figures come from the U-6 measure of unemployment.

The U-6 is made up of not only workers who have been laid off but also workers who have stopped looking for work because they believe no work is available for them, those who would like to work but haven’t looked for work recently, and those who work part-time but would like to work full-time who can’t because of economic conditions. This U-6 unemployment number blows away the nationally reported unemployment rate. It is at its highest rate since becoming an official statistic in 1994. The 10.2% unemployment rate is the highest it has been since 1983. The traditional “unemployment rate” only refers to those who are out of work and still looking for a job. The U-6 factors those who have become discouraged and given up looking for a job, as well as those who have just “taken what they can get” in a part-time job.

Some economists are talking about a straight up (“V”) recovery, which would be great, but many others are forecasting a double-dip (“W”). And there are those who believe we are in store for a longer, slower, more drawn-out (“L”) period, where the economy continues to struggle. Productivity is extremely high, with employers downsizing and outsourcing jobs overseas. Unfortunately there are so many workers jobless and we need to get people back to work for the economy to recover.

If you fall into the U-6 unemployment category, here are a few things you can do:
• Downsize your lifestyle (cut back on all expenses possible).
• Reduce or eliminate your debt.
• Sell your stuff (if you don’t need it. You can always replace it later).
• File for unemployment if you haven’t already.
• Have an updated and sharp looking resume.
• Start a business of your own (see How to Start a Business with No Money in a Bad Economy).
• Pick up odd jobs for short-term cash. (Visit ODesk.com and eLance.com).
• Seek advice from a good financial advisor or coach.

All financial problems can be solved. Start with the problem closest to you, and look for more rewarding problems to solve.

"In the end it will be alright; if it’s not alright, it’s not the end.”