How is the unemployment rate is figured out?

Blanco · Before February 2015

Is it the actual number of people unemployed or is it the people that are collecting unemployment? I was watching the news and they said that the unemployment rate is lower than it has been in almost two years. I just find it a little funny that it is so low now that so many people have exhausted all of their unemployment benefits and it would make sense if they use the number of people on unemployment to get the numbers for the national unemployment rate.

AzurePudding · Before February 2015

Unemployment rate is determined by the workforce who are currently unemployed.

By workforce, this means people who are working or are looking for a job. Someone who is not looking for a job is not part of the workforce and does not effect the unemployment rate. I am of age to work, am unemployed, but am not looking for a job, so I do not count for the unemployment rate.

So, the formula is ((unemployed workforce)/(total workforce) x 100. Hope that helps.

Toby · Before February 2015

AzurePudding wrote:

Unemployment rate is determined by the workforce who are currently unemployed.
By workforce, this means people who are working or are looking for a job. Someone who is not looking for a job is not part of the workforce and does not effect the unemployment rate. I am of age to work, am unemployed, but am not looking for a job, so I do not count for the unemployment rate.
So, the formula is ((unemployed workforce)/(total workforce) x 100. Hope that helps.

Isn't what you're describing a NEET? Someone who is unemployed is just the population who can work who are not, it doesn't count the people searching, surely?

I'm only asking because I know the reason knowing unemployment rates is important is mainly so you can judge how much income tax is being paid back into the government. People who are looking for work pay none of that. (inb4 a wikipedia article slams me)

Persona · Before February 2015

I thought the census determined the unemployed.

AzurePudding · Before February 2015

Toby wrote:

AzurePudding wrote:
Unemployment rate is determined by the workforce who are currently unemployed.
By workforce, this means people who are working or are looking for a job. Someone who is not looking for a job is not part of the workforce and does not effect the unemployment rate. I am of age to work, am unemployed, but am not looking for a job, so I do not count for the unemployment rate.
So, the formula is ((unemployed workforce)/(total workforce) x 100. Hope that helps.
Isn't what you're describing a NEET? Someone who is unemployed is just the population who can work who are not, it doesn't count the people searching, surely?
I'm only asking because I know the reason knowing unemployment rates is important is mainly so you can judge how much income tax is being paid back into the government. People who are looking for work pay none of that. (inb4 a wikipedia article slams me)

I am sure unemployment rate counts those who are looking for work. Lately there has been a slight bump in unemployment because people are bcoming a bit more confident in finding a new job, so as they leave complete unemployment, they become searching for a job which qualifies them for the unemployment rate.

A slight rise in unemployment isn't always a bad thing, although it may seem like it is.

XxAtillaxX · Before February 2015

I first thought this was complete spam, and this is somehow related to Everybody Edits? XD

Different55 · Before February 2015

Moved to Off-Topic.

Tako · Before February 2015

Assuming you're referencing to America, the "Bureau of Census for the Bureau of Labor Statistics" (BoCftBoLS for short. Still a mouthful.) does a survey every month called the Current Population Survey, which I'm sure you're familiar with. This is where they account for unemployment.

You can visit the BLS website for more information.

justafool · Before February 2015

I have read somewhere that data is obtained from a monthly phone survey of 60,000 households on behalf of the Bureau of Labor Statistics. They call each household and ask questions about each member and assign each member to any of the categories: employed, unemployed or not in labor force, based on the answers. I just don't think that estimating the total number of unemployed from 60000 families, is enough data to represent the entire country's unemployment rate. Read latest news about unemployment claims at: Unemployment claims drop to near five-year low

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