Unemployment Rate Looking at more than just the number….

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Presentation transcript:

Unemployment Rate Looking at more than just the number….

How Is Unemployment Measured? The unemployment rate is calculated as the percentage of the labor force that is unemployed Unemployment Rate = # unemployed Labor force  100 Labor Force = # people over 16 with jobs + # people looking for jobs

Calculating Unemployment AdultPopulation (251 million) Labor Force (157 million ) Employed (149.0 million) Not in labor force (94.0 million) Unemployed (8.0 million) 8.0/157 = = 5.1% # Unemployed Labor Force

Analyzing more than just one number… Great Recession 10.2% 5.1% On the surface, the unemployment number looks very good, but……

62.6% # Unemployed Workers = Unemployment Rate Size of Labor Force

Reading: Labor Force Participation Conclusions: falling labor force participation rates make the unemployment rate look significantly lower than it is –One factor in why GDP is only growing at +2.0%

+ --- Economy Today? 2015

Boomerang Kids jan-june12/makingsense_02-14.htmlhttp:// jan-june12/makingsense_02-14.html

U.S. Business Cycle ? ’s Technology Boom Housing Bubble Great Recession Internet Stock Collapse