Total unemployment goes flat
Today鈥檚 Employment Situation showed that in April 鈥渢otal unemployment鈥� including all marginally attached workers went flat at 14.5% while the traditionally reported unemployment rate declined slightly to 8.1%.
The traditional unemployment rate is calculated from the monthly household survey results using a fairly explicit definition of 鈥渦nemployed鈥� (essentially unemployed and currently looking for full time employment) leaving many workers to be considered effectively 鈥渙n the margin鈥� either employed in part time work when full time is preferred or simply unemployed and no longer looking for work.
The Bureau of Labor Statistics considers 鈥渕arginally attached鈥� workers (including discouraged workers) and persons who have settled for part time employment to be 鈥渦nderutilized鈥� labor.
The broadest view of unemployment would include both traditionally unemployed workers and all other underutilized workers.
To calculate the 鈥渢otal鈥� rate of unemployment we would simply use this larger group rather than the smaller and more restrictive 鈥渦nemployed鈥� group used in the traditional unemployment rate calculation.
