ABSTRACT
When people look at the official unemployment rate for labor, they are only looking at the tip of the underutilization iceberg. For many years they have suspected that the official unemployment rate understated the true unemployment rate. The U.S. and Canadian labor unemployment rates both exhibit great regional variation. In recent years the states with good sources of energy and those selling grain to the socialist world, Texas, Wyoming, and the corn belt states, have maintained low unemployment rates. At the beginning of the sixties, after eight years of Eisenhower drifting, unemployment began to receive top attention, particularly since other capitalist countries, excluding Canada, had much lower unemployment rates. At one point President Kennedy sent his top economic advisers to Western Europe to find out the secret of their success. The argument at this time was over whether the unemployment was due to lack of aggregate demand or to so-called structural problems in the labor market.
