FSteve Mnuchin, Trump’s nominee for Treasury Secretary, claimed during his confirmation hearing on Thursday that the unemployment rate is “not real” and that “the average American worker has gone nowhere.”
In response to a line of questioning by Sen. Maria Cantwell (D-WA) about what he would do to protect voters from another recession, Mnuchin claimed that he has traveled with the president and understands why Trump was elected.
“The unemployment rate is not real,” he said. “The average American worker has gone nowhere, and president-elect is committed, as am I, as his economic adviser, to work for the American people and grow the American economy so that the average American worker does better.”
On the campaign trail, Trump also repeatedly claimed that the unemployment rate is a “phony number,” and that the real rate could actually be close to 42 percent.
But Mnuchin, a former Goldman Sachs banker and the co-founder of a major lending bank, should know better. Calculated by the Bureau of Labor Statistics (BLS), the unemployment rate is the percentage of the total labor force that is unemployed but actively seeking employment. The number is a critical indicator of how the economy is doing and is widely used by economists. The number is respected by both Democrats and Republicans as a valid indicator of job growth. The BLS has calculated the rate the same way since the 1940s, and its methods do not change from one administration to the next.
Despite the (real) numbers, a recent poll found that 53 percent of Republicans believe that the unemployment rate has risen under Obama. More than a third of all Americans think its worse now than when Obama took office.
Some believe that there’s a better measure to track unemployment. That statistic, called the U-6, tracks everyone who is out of work, people not looking but who want work, and those unable to find full-time employment. That number is higher — currently it hovers over 9 percent. But Mnuchin made no mention of this statistic being a better indicator of job growth, and it’s not clear he would give any credence to any labor statistic as Treasury Secretary.