Total unemployment, traditionally-reported unemployment rates both decline in June
'Total unemployment' declined to 12.1 percent in June, while traditionally-reported unemployment rate also went down to 6.1 percent. The US Bureau of Labor Statistics released its report last week.
'Total unemployment' declined to 12.1 percent in June, while traditionally-reported unemployment rate also went down to 6.1 percent. The US Bureau of Labor Statistics released its report last week.
Thursday's聽Employment Situation report聽showed that in聽June 鈥渢otal unemployment鈥� including all marginally attached workers declined to 12.1 percent while the traditionally reported unemployment rate also improved declining to 6.1 percent.
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.