Common Unemployment Myths That Will Shock You
Trying to determine the actual current unemployment in the USA is a perplexing set of rules that the government uses, and not all economists agree that the method accurately reflects the true reality.
The myths are:
The official unemployment rate is based on a SURVEY comprising of 60,000 homes. It is NOT based on unemployment benefits a state doles out. I was stunned at this. A mere 60,000 homes, why???? It includes people who quit their jobs voluntarily (making them ineligible), those who are re-entering the work force and those whose benefits have expired. Any sort of work done in a given week is considered employment. The monthly employment surveys that provides data for unemployment reports also is part of a monthly survey of 160,000 businesses and government agencies. This survey is separate from the household survey. The survey asked the employer how many have they lost. If the report indicates that 100,000 jobs were added, it means that 100,000 were hired more than were laid off. Someone who was laid off and goes to school is considered employed because they are not looking for work. This is a stupid formula, most students do work PT. For the millions that have given up looking for work, the same idiocy rule applies because they are not looking, yet, they are not working.
Crazy! Thus, the figures you hear are much worse as many economists state. There are about 13 million unemployed and 6 million not counted in the labor force, but want a job. There 5 million under age 35 not working and another 6 million between age 36-64. Whites have 9.3 million unemployed, blacks 2.5. Almost 8 million have not worked for more than 16 weeks. Among the college educated, 2.8 are unemployed and 3.2 high School grads.
All very sobering numbers.