Unemployment numbers only count people who report to unemployment offices. Most people don't keep reporting to the unemployment office after their unemployment benefits run out, because there's no point. Therefore, if you're unemployment benefits run out, and you stop going to the unemployment office, you drop off the unemployment rate.
So if everyone who lost a job never got work again, the "unemployment rate" could actually either stay the same or get better. Even if those people are still looking for work.
So it's a meaningless statistic. But for some reason it is still used to say "Hey, look, the economy is great".
2006-11-03
06:47:17
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6 answers
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asked by
romulusnr
5
in
Politics & Government
➔ Other - Politics & Government