O.k today I get the report that the unemployment rate has reached 4.6 percent but for the most part of this year and last year, the unemployment rate has been at 4.5%. I mean for every single month it was 4.5 percent. Do you think they way they are calculating these numbers are suspect? It hasn't reached 5.0 or 4.2 it is almost always 4.5%.
2007-08-03 02:13:40 · 6 answers · asked by e j 2 in Business & Finance ➔ Other - Business & Finance
Well the economy added 92,000 jobs for the month of July and I don't think that is good news. That is mighty weak. How can the economy be in such great shape when it has added such weak numbers? Doesn't make sense.
2007-08-03 02:56:39 · update #1
Who was it that said "lies, damn lies, and statistics"
"Unemployment" is a government manufactured statistic that undergoes mucho manipulation:
First, the DOL estimates that some percentage of Americans is always out of work or chronically unemployed, so they're not counted at all.
Second, Unemployment Insurance runs out after 6 months, so people who continue to search for jobs or give up looking for jobs are not counted as unemployed.
Finally we count Americans currently drawing benefits vs those "jobs added" the ones dropping off prior to 6 months, come up with some reasonable number and go with it.
Some years back, I believe it was Greenspan who said the unemployment rate for a healthy economy SHOULD be at least 6% (so the workforce stays nicely pliable) some people thought that was rather draconian so in recent years, the statistic conveniently stays under 5%.
To answer your question, yes the number is a load of S***
2007-08-03 03:29:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
There is nothing odd about it. The economy has been good for quite a long time so the unemployment rate has stayed low. It was above 6 percent a few years ago with many people lining up for unemployment benefits. If we go into a depression, the rate will go up again. It does not change dramatically from month to month. When the rate is around 4-4.5 percent, that is actually considered almost full employment. There is always some percentage of people unemployed.
2007-08-03 09:22:19 · answer #2 · answered by Anonymous · 0⤊ 2⤋
The definition of "Unemployed" that they use is probably one of the main reasons. You have to be actively looking for work to be considered unemployed. It is very arbitrary and difficult to measure someones intentions, thats why I think the numbers are fairly consistent.
2007-08-03 09:21:56 · answer #3 · answered by the_iceman86 6 · 0⤊ 0⤋
Well those who want to work do , and those who don't don't so that is why the fluctuation is always within tenths of a point , figuring in for deaths , and new people entering the work force...
2007-08-03 09:19:29 · answer #4 · answered by Anonymous · 1⤊ 1⤋
That is weird. Especially since more and more people (at least in my community) are going without jobs.
2007-08-03 09:18:40 · answer #5 · answered by reymop 2 · 1⤊ 0⤋
Someone took an extended vacation.
2007-08-03 09:22:00 · answer #6 · answered by Anonymous · 0⤊ 0⤋