11. \"The unemployment rate also fails to capture all of the people who have giv
ID: 2494481 • Letter: 1
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11. "The unemployment rate also fails to capture all of the people who have given up looking for work," reports the New York Times. This is one of many complaints about how the U.S. government measures the unemployment rate. But as hinted at in the chapter, the U.S. government actually does count these discouraged workers," and it includes them in the 'U-4, ‘U-5', and 'U-6, definitions of unemployment. The government also has a few other measures of the labor market: It just so happens that the media typically ignore these measures. Let's look at these measures in 2007 and 2008 as the U.S. economy slowed and the official “unemployment rate rose to see if we get a different story. September September 2007 2008 6.1% Official unemployment rate 4.7% U-4 (includes discouraged workers) 4.9% 6.4% U-5 (also counts a few part-time workers as unemployed) 5.5% 7.1% 11.0% U-6 (counts many part-time workers as unemployed) 8.4% 62.9% Employment as percentage of population 620% (Source: Bureau of Labor Statistics, Table A-12, Alternative Measures of Labor Underutilization, http://www.bls.gov.)Explanation / Answer
Change in employnment rates are
UR = 1.4 = 29.7%
U4 = 1.5 = 30.6 %
U5 = 1.6 = 29%
U6 = 2.6 = 30.95%
E/P = -0.9 = 1.43
2. Yes, for all the measures incates that except E/P
3. Yes, For U6
4. YES , for E/P as here instead of those who are looking and eligible for work , we are taking the entire population
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