Calculating Unemployment

Calculating Unemployment - Calculating Unemployment The...

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Unformatted text preview: Calculating Unemployment The Bureau of Labor Statistics (BLS) regularly gathers data from 60,000 households to compute a number of macroeconomic figures. One of these figures is the unemployment rate. To compute the unemployment rate, the first step is to place people into one of three categories: employed, unemployed, or out of the labor force. People who are employed are currently working. People who are unemployed are not currently working, but are actively searching for a job and would work if they found a job. People who are out of the labor force are either not currently looking for a job or would not work if they found a job. Once people have been placed into the appropriate categories, the total labor force can be calculated as the total number of workers who are either employed or unemployed. The unemployment rate is the ratio of the number of people unemployed over the total...
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