http://www.nytimes.com/2014/08/26/upshot/a-new-reason-to-question-the-official-unemployment-rate.html?rref=upshot&abt=0002&abg=0&_r=0
This article calls into question the accuracy of the official unemployment rate and highlights some fundamental reasons why the report may not be as concrete as some would like to believe. For example, the United States has a vast population, but information regarding employment is demanded at a fairly fast pace. The author believes that the luxury of a timely report may be overshadowing the importance of accurate content.
This, the author claims, has become an even bigger problem within the past 20 years, as Americans are seemingly much less willing to partake in surveys. Skepticism regarding the authenticity of surveys has shot up over the last two decades, making it harder for the government to accurately report the unemployment rate. This all suggests the possibility that the unemployment rate is higher than it is reported in official statements.
This is definitely an extremely overlooked issue. Nowadays the media, and people in general, see the unemployment rate as a 100% accurate number. Many typical Americans don't have an understanding of what it actually is made up of.
ReplyDeleteMuch of what I have read in related articles also seems to suggest that the “true” unemployment of labor resources is likely greater than the value reported in the unemployment rate. To improve the measure, I believe the Bureau of Labor Statistics (BLS) should take into account discouraged workers. Discouraged workers, individuals who have given up actively seeking work after being unable to find employment, are placed in the “not in the labor force” category. Since they are not considered unemployed or part of the labor force, they are not included in the official unemployment rate calculation. If the BLS were to include discouraged workers in the unemployment rate, I believe we would see a more accurate and telling value.
ReplyDeletei agree that this is a issue. I believe that some people even look at these inaccurate numbers and become discouraged workers. We have to come up with a better way of collecting this data or provide more information to Americans about the seasonal changes of the unemployment rate.
ReplyDeleteI like that this article raised a point I had overlooked when thinking about the unemployment rate.I agree with the argument that a survey may not present the most accurate data. This emphasizes why no one value (GDP, unemployment rate, etc.) can give a complete view of the health of the economy.
ReplyDeleteI hadn't ever thought of this before. I like how the article bases around the issue that most americans believe what we're told. If a credible news source gives a statistic, it's likely to be accurate, especially if it's coming from the government. I like that this article touches upon the fact that not only are the numbers given to us sometimes inaccurate, but that they are increasingly so.
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