Unemployment down, again.
in February 鈥渢otal unemployment鈥� including all marginally attached workers declined to 14.9 percent from the prior month's level of 15.1 percent, while the traditionally reported unemployment rate went flat at 8.3 percent.
This chart shows the annual rate of total unemployment over the past 12 years. The economy added 227000 jobs in February, and the total unemployment rate dropped to 14.9 percent.
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Today鈥檚 Employment Situation showed that in February 鈥渢otal unemployment鈥� including all marginally attached workers declined to 14.9% from the prior month's level of 15.1% while the traditionally reported unemployment rate went flat at 8.3%.
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.