Understanding unemployment - Complete 3-11

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1、UnderstandingUnemploymentHowtheGovernmentEstimatesUnemploymentCharlesN.Anderson©Copyright2011byCharlesN.Anderson1PotentialCivilianLaborForce(≥16yearsofage)InthelaborNotinthelaborforceforce(NILF)EmployedUnemployedMeasuresofUnemploymentU-3:Totalunemployed/the

2、civilianlaborforcex100=“OfficialUnemploymentRate”U-6:(Totalunemployed+allmarginallyattachedworkers+totalemployedpart-timeforeconomicreasons)/(Civilianlaborforce+allmarginallyattachedworkers)x100Comparison,December,2009U-3=10%(15.3millionunemployed)U-6=17.3%

3、(26.5millionunemployed)©Copyright2011byCharlesN.Anderson2HowtheGovernmentEstimatesUnemploymentCurrentPopulationSurvey(CPS)Becauseitisimpracticaltoactuallycounteveryunemployedpersoneachmonth,theGovernmentconductsamonthlysamplesurveyof60,000households,calledt

4、heCurrentPopulationSurvey(CPS)tomeasuretheextentofunemploymentinthecountry.TheCPShasbeenconductedintheUnitedStateseverymonthsince1940.Ithasbeenexpandedandmodifiedseveraltimessincethen.Peoplewithjobsareemployed.Thisincludes:Allpersonswhodidanyworkforpayorp

5、rofitduringthesurveyreferenceweek.Allpersonswhodidatleast15hoursofunpaidworkinafamily-ownedenterpriseoperatedbysomeoneintheirhousehold.Allpersonswhoweretemporarilyabsentfromtheirregularjobs,whethertheywerepaidornot.Peoplewhoarejobless,lookingforjobs,anda

6、vailableforworkareunemployed.Thisresultsinundercountingtheactualunemploymentrate,sinceitdoesnotaccountfor“marginallyattachedworkers”(seenextpage)Peoplewhoareneitheremployednorunemployedarenotinthelaborforce.©Copyright2011byCharlesN.Anderson3HowtheGovernmen

7、tEstimatesUnemploymentWhoisUncounted(Categorizedas“NotintheLaborForce)?Marginallyattachedworkers:Personswhocurrentlyareneitherworkingnorlookingforworkbutindicatethattheywantandareavailableforajobandhavelookedforworksometimeintherecentpast.Thisbreaksdownasfo

8、llows:Discouragedworkers:Thosenotcurrentlylookingbecausetheybelievetheirsearchwouldbefutile.Example:Noworkavailableinhis/herlineofworkorarea;he/shecouldnotfindworkorlacksnecessaryschooling,training,sk