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How does the unemployement rate drop when we have fewer people working?

  1. CMerritt profile image81
    CMerrittposted 6 years ago

    How does the unemployement rate drop when we have fewer people working?

    According the the Bureau of Labor in Dec of 2011 there was 132.9 million people employed in the USA, in Jan of 2012 there were 130.4 million people employed....a minus 2.5 million and somehow, the unemployement rate DROPPED to 8.3%.....

    Now, someone explain to me HOW it can drop when we have 2.5 million fewer people working than the previous month?

  2. Joelipoo profile image82
    Joelipooposted 6 years ago

    Because the unemployment numbers are not really based on how many people are out of jobs.  They are based on the number of people who have applied for unemployment.  If the numbers were really based on how many people aren't working, it would be closer to %25.  The unemployment numbers will somehow continue to drop just to make Obama look better in his quest for reelection.

  3. Mr. Happy profile image82
    Mr. Happyposted 6 years ago

    In the "unemployment" numbers, those who are no longer looking for a job (kinda like me lol) are not counted in. So, the unemployment number is made-up by those who are not working but are currently seeking a job.
    If all the unemployed stopped looking for a job, the number would be at zero, even though tons of people have no jobs ...

    There are so many ridiculous things/rules in our societies and hardly anyone wants to do anything to better things ... most are just thinking of their own belly ...

  4. frankthelunatic profile image59
    frankthelunaticposted 6 years ago

    Because the unemployment numbers are not based on the number of people who are out of work. The government only considers people who are actively collecting unemployment benefits to be unemployed. And it only counts full time workers who are actively collecting benefits. If you were full time and collecting and your benefits have run out, you are not unemployed by the governments standards, you are just not working. Also, if you are full-time and your hours were cut to part-time or your hours have been cut back to the point that you qualify for a partial unemployment, then you are not counting into the total unemployment equation. If you are a part-time worker and you are laid off, you are not counted as being unemployed either. So there are many other people out there that are unemployed but are not being counted in.

  5. Lions Den Media profile image61
    Lions Den Mediaposted 6 years ago

    What the government is doing is -- reducing the job universe in that there are fewer jobs, therefore the percentage of unemployed drop. For instance, when a company down sizes they eliminate positions that they do not plan on keeping. This reduces the number of jobs people can compete for.

    In addition, the government doesn't count people "not looking for work" and they don't count people that have just lost their unemployment benefits. And they do not count people working part time that are attempting to find a full time job. So, if you are mowing lawns and have a paper route you are employed in the eyes of the government.

    As far as the job universe is considered lets say there are 10 jobs and 10 people looking for a job. That equals 100 percent unemployment.  Now the government comes out and says there now only 8 jobs available (perhaps a company shut down operations). The effective unemployment rate then drops to 80 percent unemployment because there are 10 people looking but only 8 jobs available.

  6. sarmack profile image60
    sarmackposted 6 years ago

    Even though government officials have voiced to the contrary, all the people who are unemployed are not accounted for in the system.  Some people, not receiving unemployment benefits are invisible and treated as though they don't exist.  If you are an illegal alien, a declared alien, or one of their children, you are more likely to be cared for by other means.  Basically, the same answer as given previously but in other words.  An in depth look at our 50's generation would reveal that these people are also ignored and not even considered for jobs in the majority of cases.

  7. Express10 profile image87
    Express10posted 6 years ago

    Various groups including the media prefer that people focus on what they choose, which is not always the plain truth. That said, people discussing unemployment (particularly in the media) choose what groups of the unemployed are and are not counted. So the millions of people who cannot find value in working at Burger King or McDonald's only to spend every dime earned on day care are not counted. Yes, I'm a bit sarcastic, but I don't like the constant fudging of the numbers and overly optimistic crap that I frequently see on national and local news pertaining to this. I'd prefer that the truth be discussed. To them, it's fine to single out one thing and twist the truth. This never works in the best interests of the public.

  8. Rhymeandreason profile image60
    Rhymeandreasonposted 3 years ago

    I am really scratching my head about the same thing. It is very sad that some people believe those statistics. The older people are most effected, and they had contributed so much in the work place. I had been unemployed since 2011. My faith, family, and friends had really kept me grounded.

    http://rhymeandreason.hubpages.com/hub/ … Job-Market