Why are so many people confused about the unemployment rate?

Question

I see so many people who mistakenly think that the unemployment rate is calculated by counting the people who collect unemployment. See answers to linked question:

http://answers.yahoo.com/question/index;_ylt=Ajs9srofzVHvcFiD21h8USzQ7BR.;_ylv=3?qid=20071019065613AAbZ4b5

Should people not be required to learn basic economics concepts in high school? I think that might help to clear up a great deal of the ignorance surrounding minimum wage, tax policy, etc. Thoughts?

For information on how to calculate the unemployment rate:

http://www.bls.gov/cps/cps_htgm.htm

Answer 1

Your recent request to the Division of Labor Force Statistics [e-mail] email address referenced the Freedom of Information Act (FOIA). The information you requested is available through publically available sources, which I can refer you to, that do not require FOIA handling.
Briefly, your questions are similar to those we receive each Thursday when people hear the reports of the weekly unemployment insurance claims information. These data are compiled by the Employment and Training Administration, and reported in their news release at http://workforcesecurity.doleta.gov/press/2007/062107.asp .
These weekly data provide almost instantaneous measure of the nation's labor market.
However, as you've observed, they do not include persons who have exhausted their unemployment insurance, or, for that matter, never filed for unemployment insurance to begin with. That's why the Department of Labor also produces the national unemployment rate. This monthly measure fills out the picture regarding the labor force, but only comes out every 4 or 5 weeks rather than every week.
The official unemployment rate for the United States is produced from data collected in the Current Population Survey, a national sample survey conducted each month. The estimate of unemployment is principally based on the survey responses of individuals to questions regarding their jobseeking efforts in the past 4 weeks; no part of the unemployment rate estimation is based on whether people receive unemployment benefits or not. If you were in our survey, and were actively looking for work, and available to take a job, you would be counted as "unemployed" regardless whether you receive unemployment benefits or not. Our survey does not usually ask about unemployment insurance benefits at all.
You might be interested in the publication "How the Government Measures Unemployment". < > That publication explains:
"Some people think that to get these figures on unemployment the Government uses the number of persons filing claims for unemployment insurance (UI) benefits under State or Federal Government programs. But some people are still jobless when their benefits run out, and many more are not eligible at all or delay or never apply for benefits. Indeed, typically less than a third of the unemployed file claims for UI benefits. So, quite clearly, UI information cannot be used as a source for complete information on the number of unemployed."
Individuals are considered unemployed as long as they meet the requirements provided in the document above, even if they have exhausted their unemployment insurance (UI) benefits. In fact, the majority of the unemployed are not receiving such benefits, either because the benefits have ended or because they did not qualify for UI payments. > Hence, benefits are not a criteria for determination of unemployment in the CPS. Data on the number of UI claimants are produced from administrative records from the state UI programs. These estimates are released separately from the survey data on total unemployment and are not used as a measure of total unemployment.
The current unemployment rate for the United States is 4.5 percent. The report is available online at http://stats.bls.gov/news.release/pdf/empsit.pdf .
If you still wish to submit a Freedom of Information Act request, you need to follow the procedures stated at
http://www.dol.gov/dol/foia/guide6.htm
Sincerely,

Francis Horvath
[e-mail]
Office of Employment and Unemployment Statistics
Bureau of Labor Statistics
202-691-6378

Answer 2

This is not an economics matter. It is statistics. The major source of factual information is still the number of people receiving unemployment compensation. The rest of the numbers are derived from sample populations, and even the margin for error is calculated.

Answer 3

Majority of people in the country are poor 'n some are uneducated so they can't find jobs easily like a well-educated person

Answer 4

Do not fear, George Winner Bush is here to correct the problem.