Originally posted by: Witling
Cad and Galt. You two guys should write a book on labor statistics. What you two don't know should fill a good sized volume.
BDawg wrote, "Besides, the current unemployment rate is artificially affected by the mass numbers of people who were unable to find jobs and dropped out of the job market."
Cad responded with a later chime in from Galt, "Keep trying to tell yourself that."
Here's a Bureau of Labor Statistics
Link. and, lest this be too hard to do, here's what it says about being employed and unemployed. I tried to keep it simple because I know you guys don't like data.
People are classified as employed if they did any work at all as paid
employees during the reference week; worked in their own business,
profession, or on their own farm; or worked without pay at least 15 hours
in a family business or farm. People are also counted as employed if they
were temporarily absent from their jobs because of illness, bad weather,
vacation, labor-management disputes, or personal reasons.
People are classified as unemployed if they meet all of the following
criteria: They had no employment during the reference week; they were
available for work at that time; and
they made specific efforts to find
employment sometime during the 4-week period ending with the reference
week. Persons laid off from a job and expecting recall need not be
looking for work to be counted as unemployed. The unemployment data
derived from the household survey in no way depend upon the eligibility for
or receipt of unemployment insurance benefits.
The part in bold means that if you're discouraged and not looking for work, which is what BDawg said (please see paragraph two of this post), you're not "unemployed," hence the unemployment rate is lower than it should be if you counted people who were so discouraged they hadn't applied in a four week period.