Unemployment Rate Criticisms

The unemployment rate is BS. The important number is the labor participation rate.

If you're getting unemployment benefit but do some undeclared job, you are employed but count as unemployed.If you're not looking for a job, it's fair to not be counted as unemployed. Otherwise you can also count any kid in age of working in the statistics or family who have decided to have one member employed and the other taking care of the family.The writer (CEO of gallup) pretty much explains that the stats behind the title is not what HE thinks it is.This statistic d

Full employment? What about all the people that have dropped out of the workforce?

The percentage you see flying around doesn’t include people who aren’t actively looking for jobs u-3.if you include them it goes to 4.4 go to bls.gov and find alternative measures of labor underutilization. Its not undercounting just different levels/definitions of unemployment qualifications

Employment rate is a false statistic if anything. The population is aging since childbirth rates have gone way down over the last few decades. A larger percent of adults are retired now and are included in that employment rate statistic.If you just want to include people “kicked” off the lists, U-6 may be what you’re looking for. https://unemploymentdata.com/current-u6-unempl

The people working in the sharing economy because they don't have other options for income get counted in employment statistics. The PhD working at starbucks gets counted in the employment statistics. People who are not actively seeking employment don't. The unemployment rate might be low, but the labor participation rate has been hovering around 63% since 2016. It was above 66% for most of the 90s through the early 2000s, until the financial crisis. Employment statistics are, at best,

I believe the technical economic term is “discouraged workers”. Someone correct me if I’m wrong.This is a useful resource on aspects not included in the unemployment metric: https://www.investopedia.com/financial-edge/0609/what-the-un....

I don't know the answer to your specific question but I want to mention unemployment may be a misleading number. Unemployment only counts people who are actively looking for employment. It doesn't include those who have given up and dropped out of the labor market or those who are underemployed. It's only one metric of the health of the workforce and shouldn't be looked at alone.

Could you post the text here in the comments? There's a paywall.One issue with the standard unemployment rate calculation is that it's defined as # of unemployed people divided by the total labor force. The total labor force does not include people who are not looking for work.So if someone is unemployed and then stops looking for work, they drop out of the equation entirely, and the unemployment rate goes down.It's important to also have the "labor participation rat

The unemployment rate statistic is a bit misleading, because people who drop out of work permanently don't factor into it.