Unemployment Rate - Can someone explain this to me?

[TheGrinch]

How is it possible that "More Than 92 Million Americans Remain Out Of Labor Force"

http://washington.cbslocal.com/2014/05/02/report-more-than-92-million-americans-remain-out-of-labor-force/



but the: "unemployment rate at 6.1%"

http://www.washingtonpost.com/business/economy/hiring-drops-in-august-as-economy-adds-142000-jobs-unemployment-rate-at-61percent/2014/09/05/32eb3966-34fa-11e4-9e92-0899b306bbea_story.html


US population = 313 million

So 92million is 6.1% of 313million?  In what universe is that right?


Heh?

[2Thick]

You've got Americans not in the labor force who are retired, who are underage, who are housewives, etc, as well as those normally in the workforce who have given up looking after many months or even years of unemployment.

On the flip side, you've got people taking part time jobs, jobs below their former skill and income levels, and otherwise being "underemployed". These people help bring the "unemployment rate" down, as do those who drop out of the workforce due to longterm unemployment.

[Shockwave]

How is it possible that "More Than 92 Million Americans Remain Out Of Labor Force"

http://washington.cbslocal.com/2014/05/02/report-more-than-92-million-americans-remain-out-of-labor-force/



but the: "unemployment rate at 6.1%"

http://www.washingtonpost.com/business/economy/hiring-drops-in-august-as-economy-adds-142000-jobs-unemployment-rate-at-61percent/2014/09/05/32eb3966-34fa-11e4-9e92-0899b306bbea_story.html


US population = 313 million

So 92million is 6.1% of 313million?  In what universe is that right?


Heh?

I believe, but am not sure, that unemployment rate is calculated by the number of americans on benefits... when they go off benefits or stop looking, they no longer become 'unemployed' as far as the Government is concerned.

Its horseshit, but it makes them look better.

[24KT]

You are correct Shockwave. That's how they "calculate" it. They do the same with the CPI.
That's why the "official" inflation rate is 2%, ...meanwhile we're seeing prices for things we have to purchase increasing hand over fist. some 25, 50, some even 200% of what they were a few years ago, or even a few weeks ago.

[TheGrinch]

but then using that logic..... you could theoretically have 300 million people out of work and a 0% unemployment rate if the government just said fck it and stopped paying benefits?

[Shockwave]

but then using that logic..... you could theoretically have 300 million people out of work and a 0% unemployment rate if the government just said fck it and stopped paying benefits?

Correct. I think the logic is, if theyre not asking us for help they must not be unemployed, lol.

I have no idea what the real logic is, but ive seen it over and over thats how they calculate 'unemployment'. Also think it counts people working part time.

I think the ACTUAL unemployment rate is called something different.

[tonymctones]

Correct. I think the logic is, if theyre not asking us for help they must not be unemployed, lol.

I have no idea what the real logic is, but ive seen it over and over thats how they calculate 'unemployment'. Also think it counts people working part time.

I think the ACTUAL unemployment rate is called something different.

yes they have different employment numbers U6 Usomething or other I cant remember.

Unemployment also doesnt count any of the people working off the books or in the blackmarket (think drugs etc.)