Unemployment drops in May

'Total unemployment,' which includes under-employed and workers no longer looking for jobs, drops to 16.6 percent.

|
Blytic
Bureau of Labor Statistic's May 2010 employment situation report

Today’s Employment Situation report showed that in May “total unemployment” including all marginally attached workers declined to 16.6% while the traditionally reported unemployment rate declined to 9.7%.

The traditional unemployment rate is calculated from the monthly household survey results using a fairly explicit definition of “unemployed” (essentially unemployed and currently looking for full time employment) leaving many workers to be considered effectively “on the margin” either employed in part time work when full time is preferred or simply unemployed and no longer looking for work.

The Bureau of Labor Statistics considers “marginally attached” workers (including discouraged workers) and persons who have settled for part time employment to be “underutilized” labor.

The broadest view of unemployment would include both traditionally unemployed workers and all other underutilized workers.

To calculate the “total” rate of unemployment we would simply use this larger group rather than the smaller and more restrictive “unemployed” group used in the traditional unemployment rate calculation.

Add/view comments on this post.

You've read  of  free articles. Subscribe to continue.
QR Code to Unemployment drops in May
Read this article in
https://www.csmonitor.com/Business/Paper-Economy/2010/0604/Unemployment-drops-in-May
QR Code to Subscription page
Start your subscription today
https://www.csmonitor.com/subscribe